Sony to end TV Manufacturing in Europe
Sony, the fifth largest media and electronics conglomerate of the world, plans to withdraw its TV production operations from the European region and start up two different firms under the Sony flagship in order to focus and increase its core TV output by boosting the outsourcing services. Sony plans to restructure its facilities and grow its TV production business to remain active in the competition and maintain stability on the front of the volatile economy.
The reason behind Sony selling of the TV manufacturing plant in Spain is to split the Barcelona Technology Centre into two small firms that will carry manufacturing and engineering activities. The LCD TV production will be handled by the manufacturing firm, two years after the sale.
The sale activity is expected to be over by December 2010; however, Sony has not provided any financial information regarding this move. The entire former firm and a half of the latter firm will be overtaken by Ficosa International while remaining 50% share of the latter firm will be owned by a company called Comsa Mate.
Sony also plans to deal with Hon Hai Precision Industry; the Taiwanese firm that has taken over Sony’s TV manufacturing plants in Mexico and Slovakia.
During the seventies, Sony adopted a different business approach to focus on individual markets and develop advanced manufacturing facilities for the regional customers. Sony’s approach induced profits for the company as its products received fair response from the localized markets and customers.
Following its previous successes, Sony in 1974, established its first TV manufacturing facility in the continent of diverse cultures - Europe. To strengthen its manufacturing network further, the company introduced numerous facilities such as setting up technology centers named UK Technology Centre in Wales and Barcelona Technology Centre in Spain.
Sony targeted the Eastern European region in 1996 to expand its TV manufacturing business in Slovak Republic while in 2007, the company opened up a new LCD TV manufacturing facility in the Nitra region of Slovakia.
Withdrawing operations from various regions is part of Sony’s business strategy to remain focused and aggressive in the key TV production business. At present, Sony has closed seven plants and is expected to run 43 factories worldwide at the end of the year.
