Tokyo: Sony is to sell a Japanese factory that makes small liquid crystal displays to manufacturer Kyocera as it restructures in a bid to improve profitability after the global slump, the firms said on 31 March.
Subsidiary Sony Mobile Display Corp. will sell the plant in Yasu, Western Japan, to Kyocera, with existing employment contracts assigned to Kyocera and employees transferred June 1, when the takeover commences.
Sony bought the factory in 2005 for 118.5 billion yen ($200 million) from Taiwan’s Chi Mei Optoelectronics, according to Dow Jones Newswires.
The price for the sale to Kyocera was not immediately known, but a statement from Sony said it had incurred a “loss on the fixed assets” as a result of the transaction.
It added that “no material impact is anticipated on Sony’s consolidated financial results forecast for the current fiscal year”.
Sony has been undergoing major restructuring -- including slashing jobs, selling facilities and turning to suppliers for parts -- after losing an estimated 70-95 billion yen due to falling demand amid the financial crisis.
The electronics giant said the Kyocera deal would not affect its planned acquisition of “certain business assets” of Epson Imaging Device Corporation at its Tottori plant, also in Western Japan, due to be completed on 1 April.