Tuesday, October 29, 2013
Toshiba To Unload Loss-Making Polish TV Plant
TOKYO (Nikkei)--Toshiba Corp. (6502) announced plans Monday to sell an unprofitable television factory in Poland to Taiwanese electronic manufacturing service giant Compal Electronics Inc.
The Japanese firm inked a deal to sell Toshiba Television Central Europe, which operates the Polish plant, to its longtime partner for about 25 million dollars. Transfer is set to be finalized within fiscal 2013.
The factory has been running below its production capacity of about 1 million units per year and seen losses in recent years, with Europe's debt crisis partly to blame. Toshiba hopes to trim fixed costs by shifting production of TVs for the European market to an EMS arrangement. About 700 employees are slated to be transferred to Compal.
In September Toshiba announced it would consolidate its three overseas TV plants into one. The remaining factories in China and Indonesia are to be combined into a single production base in one of those two countries.
While Toshiba's TV business was purportedly still stuck in the red for the half-year ended in September, the company is aiming for a return to profitability in the second half of fiscal 2013 by shedding overseas factories and employees.
Toshiba sold a Mexican factory to Compal in 2011.
(The Nikkei, Oct. 29 morning edition)