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Wednesday, March 31, 2010
Sony to Realign its LCD TV Manufacturing Operations for Europe

As part of its initiative to improve the profitability of its liquid crystal display TV business, Sony today announced a new strategic alliance with Taiwan's Hon Hai Precision Industry Co. Ltd. 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 (legal name: Sony Slovakia, spol. s r.o. in [State of Nitra, Slovak Republic]), 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 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.

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