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© rawpixelimages dreamstime.com Electronics Production | March 18, 2016

Bang & Olufsen partners with LG to make OLED TVs

Bang & Olufsen has entered into a strategic technology partnership with LG Electronics regarding the development and production of Bang & Olufsen’s future TV.
The Danish company has been going through a bit of a change and did initiate a review to identify strategic and structural options to increase scale and further reduce complexity within company.

As a result of this review, Bang & Olufsen has entered a strategic technology partnership with LG. The agreement entails that Danes will focus on its competencies within design, acoustics and smart home integration within TV development, and combine this with LG’s technological leadership within OLED technology.

“This partnership with LG will enable Bang & Olufsen to stay at the forefront of innovation in the TV category, a category which is currently undergoing significant change and which is very important to Bang & Olufsen. The partnership will address Bang & Olufsen’s key challenges related to scale and complexity”, says CEO Tue Mantoni.

Further, the partnership involves collaboration in other areas such as license and product bundle activities.

As a consequence of the partnership, Bang & Olufsen expects to improve gross margins and reduce capacity costs. The agreement has an annual savings potential of DKK 150 – 200 million (EUR 20.1 – 26.8 million) when fully implemented over the next three years. As a result of the partnership the Danish company expects to realise restructuring costs of DKK 10 to 15 million, of which up to DKK 5 million will be realised in the fourth quarter of 2015/16.

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