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January 31, 2008 |
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JVC CORP: To Tie Up with Funai on Supply of Flat-Panel TVs Victor Co. of Japan, or JVC, and Funai Electric Co. will join forces and supply each other with flat-panel televisions made overseas on an original equipment-manufacturing basis, Japan Times reports, citing unnamed sources. According to Reuters, JVC will supply LCD TVs made at a plant in Mexico to Funai, which will sell them under its own brand in North America. JVC, on the other hand, will market LCD TVs in Europe produced by Funai in Poland. Specifically, the Times writes, JVC will annually supply Funai with about 200,000 37-inch televisions starting this February, while Funai will annually provide JVC with about 300,000 small televisions. The Times explains that by procuring products from each other's production sites close to their main markets, JVC and Funai expect to cut transportation costs and improve plant operating ratios. The two companies also plan to release a jointly developed LCD TV in 2009, Reuters cites an industry source as saying. Reuters relates that Funai spokesman Naoyuki Takanaka said that his firm was in talks with JVC on a possible alliance but that nothing had been decided. JVC spokesman Toshiya Ogata, meanwhile, told Reuters that nothing had been set. The news on the tie-up pushed up shares of both companies, with Funai rising nearly 8% at one point, Reuters further notes. The Times points out that large electronics companies have recently forged partnerships in the production of liquid crystal display panels and other areas to reduce costs and survive fierce price-cutting competition in the flat-panel TV industry. Among other tie-ups in the industry, according to Reuters, are that of Toshiba Corp and Sharp, wherein Toshiba agreed in December to procure large LCDs from Sharp, which in turn will buy chips for LCD TVs from Toshiba. The JVC-Funai partnership indicates that the trend is spreading to small to medium-size companies that emphasize overseas markets with low-priced products, the Times says. About Funai Electric Funai Electric Co., Ltd.'s principal activities are the manufacture and sale of electrical products. The company's operations are carried out through these divisions: Video equipment; Information/ Communication equipment and Other. Video equipment consists of videos, VHS video cassette recorders, TV/VCR combination models and TV/DVD/VCR combination models, TVs and DVD players. Information/Communication equipment comprises of printers, facsimile machines, inkjet printer and laser beam printer. Others include other electronic devices. About JVC Corp. Headquartered in Kanagawa Prefecture, Japan, Victor Company of Japan, Limited (JVC) -- http://www.jvc-victor.co.jp/ -- is primarily engaged in the manufacture and sale of audiovisual equipment, information and communications equipment, electronic products and others. The Company has five business segments. The Consumer Equipment segment offers various types of televisions, digital video cameras, car audio systems, as well as players and related equipment for video, mini disc, compact disc and digital versatile disc systems. The Industrial Equipment provides visual inspection devices, audio and video equipment, as well as projectors. The Electronic Devices segment offers monitors, optical pickups, high density buildups, multi-layer boards and display parts. The Software and Media segment provides music and visual software and recording media. The Others segment is engaged in businesses related to interior furniture and production facilities. It has 96 subsidiaries and seven associated companies. JVC incurred three consecutive annual net losses: JPY7.89 billion for the fiscal year ended March 31, 2007; JPY30.61 billion for the fiscal year ended March 31, 2006; and JPY1.86 billion for the fiscal year ended March 31, 2005. |
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