Electronics Production | March 31, 2010
Foxconn to buy 90% of Sony's Slovakian LCD facility
The Taiwan-based EMS-provider Foxconn has agreed to buy 90% of Sony's LCD manufacturing facility in Slovakia.
As part of its initiative to improve the profitability of its liquid crystal display TV business, Sony has entered a new strategic alliance with Taiwan's Hon Hai Precision Industry for the production of LCD TVs for the European region. Based on this agreement, the Sony Group will sell to the Hon Hai Group a portion of its shares in the Nitra factory (Sony Slovakia, spol. s r.o.) in Slovakia—established in August 2007—which currently manufactures LCD TVs for the European region. Following the sale, the Hon Hai Group will hold about 90% and the Sony Group will retain about 10% of the shares in the Nitra factory. The employees currently working at the Nitra factory—around 2500—will be assumed by the Hon Hai Group upon the completion of the transaction. The Nitra factory will continue to be a key location for the production of Sony LCD TVs for the European region. In addition, Sony Supply Chain Solutions Europe, a wholly-owned subsidiary of Sony, will lease a portion of the Nitra factory, which will remain a logistics center of Sony Group in Europe. The parties intend to complete the sale by the end of September 2010, subject to regulatory approvals in several countries.