Matsu****a Announces Specific Plans Regarding New CRT Joint Venture with Toshiba
January 29, 2003 10:05:00 AM ET
OSAKA, Japan--(BUSINESS WIRE)--Jan. 29, 2003-- New Company to be formed by integrating CRT businesses of both companies through business divisions
Matsu****a Electric Industrial Co., Ltd. MC announced that the company has decided at its board of directors meeting held today to integrate its cathode ray tube (CRT) business into Matsu****a Toshiba Picture Display Co., Ltd. (New Company), which will be jointly established with Toshiba Corporation (Toshiba), effective April 1, 2003.
In January 2003, MT Picture Display Co., Ltd. (Preparatory Company) was established by Matsu****a and Toshiba for the purpose of making necessary preparations to integrate the CRT businesses of the two companies into the New Company. As part of such preparations, on March 20, 2003, Matsu****a will first divide and transfer its CRT business to the Preparatory Company. Following such division and transfer, Matsu****a's CRT business, together with the CRT business that Toshiba will subsequently divide and transfer to the Preparatory Company, will be integrated into the New Company, effective April 1, 2003.
The basic terms of the business division and subsequent integration are outlined as follows:
1. Objective of business integration
The objective of the business division and integration is to establish a highly-profitable CRT business structure. This will be accomplished by consolidating both companies' strengths in R&D, manufacturing and sales, thereby achieving efficient management and competitive CRT business operations on a global scale. The New Company will be the third largest TV-use CRT operation in the world. Although the CRT market is somewhat mature, annual growth of between two and three percent (based on units) is forecasted, due to brightness, color and cost performance advantages that the CRT format maintains over plasma display panels and liquid crystal displays.
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