Electronics Production | January 09, 2007
Lite-on buys Philips plant in Hungary
Taiwanese manufacturer of optical disc drives Lite-on IT, intends to acquire a car CD and DVD drive plant in Györ, Hungary from Phillips.
The plant employs approximately 1600 people. Lite-on will pay $55 million for the plant. Lite-on will also buy a 49% stake in a joint venture with Philips and BenQ, which was established to develop, market and sell the devices. Lite-on pays $7.96 million for the JV. The transaction is expected to be closed in March. Philips is selling the manufacturing operations because they consider them as non-core activity, local media reports.