Matsushita Electric and Toshiba Corporation are to consolidate their cathode ray tube (CRT) businesses into a single joint venture.
The new company will be headquartered in Osaka, Japan and will be 60% owned by Matsushita and 40% by Toshiba.
The consolidation will involve product development, manufacturing, and sales operations world-wide, except for those in Japan where the parent companies will continue to run their respective factories.
Factories that will be consolidated include Matsushita’s factories in China, the US, Germany, and Malaysia and Toshiba’s factories in the US, Thailand, and Indonesia. The new company will also take over MT Display Procurement, as it’s wholly owned subsidiary. That company is a joint procurement company established with equal ownership by Matsushita and Toshiba on April 15, 2002.
Although the name of the company has yet to be decided, it will be the world’s third largest CRT company based on the two companies’ combined sales turnover in the fiscal year ended March 31, 2002, with around 16,000 employees world-wide. Its sales projection is approximately 270 billion yen for the fiscal year ending March 2003.
Despite intense competition from other display devices such as LCDs and PDPs, the global CRT market for TV use is still expected to grow by 2% to 3% annually.