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Monday, December 12, 2005
Sanyo Partners With TV Maker to Strengthen TV Business


Sanyo Electric Co., Ltd. revealed that it will form a partnership with another company to continue the TV business, against some anticipations of its withdraw from the business.

At the current state, the company has only exchanged an MOU with the partner. The name of this partner has not been specified, but Sanyo described it as "a globally-known electronics manufacturer in Asia." By joining hands with this company in development and manufacturing of electronic products, the Japanese company intends to establish a new business model that differs from its existing one. During a press conference held in Japan on December 9, Sanyo did not come into details but it said that its collaboration plans will change its manufacturing policy which uses TV components from other makers, and manufactures its TV models at its own plants.

Through this partnership, Sanyo aims to enhance its cost competitiveness in thin-panel TVs, in particular, and fully shift to thin-panel TVs from CRT TVs. The company stated it would neither limit the kind of thin panels to handle, nor retreat from PDP TVs. Meanwhile, Sanyo does not intend to immediately stop manufacturing CRT TVs in the light of persistent demand from certain areas including Vietnam and India.

Sanyo's vice president Mr. Koichi Maeda said that the company announced the partnership before both parts officially reach an agreement, in order to contradict speculations that Sanyo might exit the TV business.

Sanyo's official press release is available in Japanese at http://www.sanyo.co.jp/koho/hypertext4/0512news-j/1209-1.html.


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