Pioneer Corporation and Sharp Corporation today signed a formal contract for the establishment of an optical disk joint venture.

The goal of the new joint venture is to make more effective use of the management resources of the two companies in the optical disk business field, and to further expand the business in this area, especially in the highly promising Blu-ray Disc market.

The new company, which will be officially named "Pioneer Digital Design and Manufacturing Corporation," will develop, design, manufacture and sell optical-disk products such as optical disk drives, recorders and players.

Pioneer and Sharp plan to launch operations at the joint venture on October 1, 2009.