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Electronics Production | March 11, 2009

Omron pulls out of Large-size Backlight Businesses

OMRON will dissolve its large-size LCD backlight business. The company established the "Emergency Measures and Structural Reform HQ," a top-level division headed by President & CEO Hisao Sakuta, in January in response to the rapid worsening of the business environment.
This division is responsible for implementing emergency measures to generate profit, including cost cutting and the consolidation of unprofitable businesses, as well as structural reform aimed at strengthening OMRON's revenue base in the medium term through the reorganization of core businesses and closure/consolidation of sites, among other measures.

The dissolution of the large-size backlight business and the closure of two production sites announced today reflect OMRON's commitment to implementing these measures. The company plans to carry out further structural reform during the "Revival Stage" (February 2009 - March 2011).

OMRON will pull out of the large-size backlight business, which encompasses the development, manufacture and sales of large-size LCD backlights, dissolving subsidiary TAMA FINE OPT. and its subsidiaries TAMA FINE OPTO and TAMA Fine Opto (Changshu).

Sales of large-sized LCD televisions have been stagnant due to a decrease in consumer spending, tipped off by the deterioration of the world economy as a result of the financial crisis. At the same time, price cuts led to intensified price competition, resulting in the rapid worsening of performance in the large-size backlight business. As the company does not anticipate large-scale improvement in profitability, OMRON determined that it would be difficult to continue to pursue this business.

The companies affected are TAMA FINE OPT - established in June 2004 and is based in Japan. It is involved in the development, manufacturing and sales of large-size LCD backlights. TAMA FINE OPTO - established in October 2004 and is based in Taiwan. The subsidiary is involved in the development, manufacturing and sales of large-size LCD backlights. TAMA Fine Opto (Changshu) - established in September 2006 and is based in China. The company is manufacturing of large-size LCD backlights.

Dissolution and liquidation of TAMA Fine Opto (Changshu) will begin promptly. TAMA FINE OPT. (in Japan) and TAMA FINE OPTO (in Taiwan) will be dissolved by the end of September 2009, with liquidation set to begin shortly thereafter.

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