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Sony to Realign its LCD TV Manufacturing Operations for Europe

Sony LCD TVs

Sony Corporation in an initiative to improve the profitability of its liquid crystal display (“LCD”) TV business announced today a new strategic alliance with Hon Hai Precision Industry Co. Ltd. of Taiwan for the production of LCD TVs for the European region.  Under this agreement, the Sony Group will sell a portion of its shares in the Nitra factory to the Hon Hai Group.

The Nitra factory (legal name: Sony Slovakia, spol. s r.o. in [State of Nitra, Slovak Republic]) currently manufactures LCD TVs for the European region.  The Hon Hai Group, after the sale, will hold about 90% while the Sony Group will retain only about 10% of the shares in the Nitra factory.  The Hon Hai Group will assume the current employees working at the Nitra factory upon the completion of the transaction.

The Nitra factory will however, continue to be the key location for the production of Sony LCD TVs for the European region.  In addition, a portion of the Nitra factory (which will remain a logistics center of Sony Group in Europe) will be leased by Sony Supply Chain Solutions Europe which is a wholly-owned subsidiary of Sony.

The sale is intended to be completed by the parties by the end of September 2010, subject to regulatory approvals in several countries. No material impact from this transaction is anticipated on Sony’s consolidated financial results for the fiscal years ending on March 31, 2010 and 2011.

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