REG-Sony Corporation Sony to Realign its Americas LCD Manufacturing Operations
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TOKYO--(Business Wire)--
1-7-1 Konan Minato-ku Tokyo 108-0075 News & Information No. 09 - 096E August 31,
2009
Sony to Realign its Americas LCD Manufacturing Operations
- Forms Strategic Alliance with Taiwan`s Hon Hai Precision Industry -
Sony Corporation ("Sony") announced that it has agreed to form a strategic
alliance with Taiwan`s Hon Hai Precision Industry Co. Ltd. ("Hon Hai") for the
production of LCD TVs for the Americas region. Based on this agreement, the Sony
Group will sell to Hon Hai Group 90% of its shares in Sony Baja California and
certain manufacturing assets related to Sony Baja California`s Tijuana site in
Mexico ("Tijuana site"), which mainly manufactures LCD TVs for the Americas
region. Following the sale, Hon Hai Group will hold 90% ownership of Sony Baja
California and the Sony Group will retain a 10% share. The Tijuana site will
remain a key manufacturing facility of Sony LCD TVs for the Americas region. Hon
Hai Group will assume employment of employees at the Tijuana site.
Within its LCD TV business, Sony is concentrating internal resources towards
areas that contribute to product differentiation, such as R&D, engineering and
design, while also establishing a structure that enables the company to bring
attractive products to market at the earliest possible opportunity. At the same
time, by proactively leveraging external manufacturing resources Sony will also
seek to reduce fixed costs, drive other cost reductions, improve profitability
and achieve business expansion.
Completions of the transfers are subject to regulatory approvals in several
countries.
No material impact from the transfer on Sony's consolidated financial results
for the current fiscal year for the transfer is anticipated.
Overview of Sony Baja California, S.A. de C.V
Location: Tijuana City, State of Baja California, United Mexican States
Date established: October, 1985 (Commencement of Operation; March 1986)
Number of employees: 3,300 (as of July 31, 2009)
Site area 152,289m²
Representative Takahiro Kawamura
Key products: LCD TVs, tuners, home audio and car audio
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Sony Corporation
Copyright Business Wire 2009
http://www.businesswire.com/news/home/20090901005583/en
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