Hitachi to halt domestic production of Wooo LCD and plasma TVs, Mitsubishi to axe optical discs?

Hitachi's line of domestically produced Wooo TVs is coming to an end, now that the manufacturer has confirmed plans to close a major plant in central Japan. In an announcement issued today, Hitachi said it will shutter its factory in Gifu, where some 100,000 LCD and plasma TVs are produced each month. Citing industry-wide price competition as the deciding factor, the company went on to clarify that the facility will shut down by September of this year, and that it will instead be used to manufacture projectors and chips. Hitachi will, however, continue to offer non-Wooo TVs manufactured by non-Japanese contractors. Japan's Asahi Shimbun, meanwhile, is reporting that Mitsubishi has decided to terminate domestic production of DVDs and Blu-Rays, due to declining sales of each. From now on, optical disc manufacturing will instead be outsourced to partner companies in India and Taiwan. For more details, check out the post-break press release.

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Notice of Reorganization of flat-panel TV

January 23, 2012

Hitachi, Ltd. (President: Here / Hiroaki Nakanishi, Hitachi) today announced that, with the goal of building a business management structure more closely linked to market, Hitachi Consumer Business Group features flat-screen TV business from FY 2012 Electronics Co., Ltd. (President: asceticism Watanabe) Hitachi, Ltd. has been in charge of consumer marketing and sales of home appliances from a wholly owned subsidiary of Hitachi (President and Director: / Koichiro Nakamura, CM Hitachi) and then transferred to the group, decided to sales-driven management system.

1. The purpose of the business transfer

Hitachi, in flat-panel TV business, reduce fixed costs through the second half of fiscal 2009 from fiscal 2007, the reduction of overseas operations, including measures to improve profitability through the use of procurement, building a business model that specializes in technology management with low-risk differentiated has been working on.

Recently, in order to further improve profitability, flat-screen TVs from Hitachi Consumer Electronics business, which will be transferred to Hitachi CM group responsible for overall sales across the Hitachi brand home appliances. This transfer will start from April 1, is expected to be completed by the end of September. Employees involved in Hitachi Consumer Electronics flat-panel TV business, including Hitachi CM, we plan to take advantage of new business and in and out of the Hitachi Group Hitachi Consumer Electronics. Hitachi Consumer Electronics does technology can be leveraged to continue to flat-screen TVs and video equipment. Hitachi CM, with flat-screen TV to make the results developed by Hitachi Consumer Electronics, for final assembly process to ensure that the consignment to the outside, we will build a stable business base for flat-panel TV business.

In addition, information tech projection Hitachi flat-screen TV has ever produced (President: Kenichi Yoshitake) is the production technology and techniques such as optical plastic substrate packaging technology developed in the manufacture of flat-screen televisions and other video equipment will continue to contract manufacturing products outside the Hitachi Group.

2. Profile of the target company

Outline of Hitachi Consumer Electronics

(1) Name Hitachi Consumer Electronics Co.
(2) Location No. 1 No. 2-chome, Otemachi, Chiyoda-ku, Tokyo
(3) representatives Watanabe, President and CEO ascetical
(4) Business Development, manufacture and sales of flat-screen TVs and other LCD projectors for business
(5) Established July 01, 2009
(6) Capital 1,000 million yen (100% Hitachi, Ltd.)
(7) Number of employees 700 (as of October 2011)
Outline of Hitachi Consumer Marketing

(1) Name Hitachi Consumer Marketing Corporation
(2) Location No. 15 No. 12-chome Nishi-Shinbashi, Minato-ku, Tokyo
(3) representatives Koichiro Nakamura, President and CEO
(4) Business Equipment engineering and maintenance services of home appliances for sale
(5) Established April 01, 2003
(6) Capital ¥ 3,000 million (100% Hitachi, Ltd.)
(7) Number of employees Approximately 3,050 names (as of October 2011)
3. Effect on the performance of the Hitachi with this matter

There is no impact on consolidated results for the year ended March 2012.