The Strategic Partnership Strengthens Toshiba TV Business in Europe
Toshiba today announced that it would make an equity investment in LG.Philips LCD Poland Sp. zo. o (LPLWR), a Polish subsidiary of LG.Philips LCD (LPL), a leading manufacturer of LCD panels. Toshiba will invest approximately 5.5 billion yen in LPLWR, giving it a stake approaching 20% of its equity.
Toshiba is reinforcing its European TV operations with Toshiba Television Central Europe Sp. zo. o. (TTCE), a new LCD TV production and sales company in Kobierzyce, near Wroclaw in southwest Poland. TTCE was established in September 2006 and will start operation in August 2007, on a site adjacent to LPLWR. Toshiba’s investment in LPLWR will allow Toshiba to secure long-term, stable procurement of LCD panels at competitive prices and with highly efficient supply logistics.
“Our partnership with LPL is an important step toward reinforcing Toshiba’s presence in the trans-European TV business,” said Toshio Yonezawa, Corporate Senior Executive Vice President of Toshiba Corporation. “LPL is a leading supplier in the global market for LCD panels and we will leverage this relationship to build an advantageous position in Europe and to provide high quality and competitive products to the market.”
“Through this strategic partnership, both LG.Philips LCD and Toshiba will build a strong foundation for growth in the European market,” said Bon Joon Koo, Vice Chairman and CEO at LG.Philips LCD. “We hope it will serve as a model case of strategic alliance between a panel producer and TV manufacturer.”
Demand for LCD TV is growing fast in Europe, and Toshiba targets total European production of some three million units by fiscal year 2009 at two manufacturing sites, TTCE and Toshiba Information Systems (UK) Ltd. in the UK. That plan will be bolstered by the investment in LPLWR.
TTCE expects to procure large-sized panels of over 50-inches from LPLWR in future, which will position the company to produce LCDs across a wide range of sizes, from 26 inches to 50 inches and more. Toshiba and LPL will also cooperate closely in developing high quality LCD panels, particularly in fine tuning image reproduction to maximize Toshiba’s cutting-edge digital imaging technologies of TV, and in enhancing product quality to reflect Toshiba’s feedback as a panel user.
Outline of LG.Philips LCD Poland:
|Company name:||LG.Philips LCD Poland Sp. zo. o.|
|Ownership:||LG.Philips LCD over 80%; Toshiba less than 20% (As of August 2007)|
|Start of operation:||First quarter, 2007|
|Business:||Assembly of LCD panel module|
About LG.Philips LCD:
LG.Philips LCD is a leading manufacturer and supplier of thin-film transistor liquid crystal display (TFT-LCD) panels. The Company manufactures TFT-LCD panels in a wide range of sizes and specifications for use in televisions, notebook computers, desktop monitors and applications. Headquartered in Seoul, South Korea, LG.Philips LCD currently operates seven fabrication facilities in Korea and has approximately 21,000 employees in locations around the world.
For more information about the Company, please visit http://www.lgphilips-lcd.com.
Toshiba, a world leader in high technology, is a diversified manufacturer and marketer of advanced electronic and electrical products spanning information & communications equipment and systems, digital consumer products, electronic devices and components, power systems, industrial and social infrastructure systems, and home appliances.
Under its mid-term business plan, Toshiba is promoting initiatives for sustained growth that will support its continued development as a highly profitable group of companies active in both high growth and stable growth businesses. Toshiba has 172,000 employees worldwide and annual sales of over US$54 billion.