Sony Corp to sell LCD plant to Kyocera

TOKYO/NEW DELHI: Leading consumer electronic brand Sony Corp today said it will sell its small and mid-size TFT LCD plant in Japan to rival Kyocera.

However, the company did not disclose terms of the deal. Kyocera would buy the Yasu plant, which manufactures small LCD panels used in gadgets such as mobile phones.

Sony Mobile Display Corp (SMD), a wholly-owned subsidiary of Sony Corp, and Kyocera have entered into an agreement for transfer of TFT liquid crystal display (LCD) design and manufacturing operations at the Yasu Plant of SMD to Kyocera, Sony said in a statement.

Sony expects the deal would enhance its customer relationships and strengthen competitiveness of its small- and medium-sized TFT LCD business.

The deal, subject to regulatory approvals, is expected to close by June 1, 2010.

In a separate statement Kyocera said, this acquisition would enable it to expand its diverse TFT LCD line with products of even higher added value to meet a wider range of customer needs.

Meanwhile, Sony said the existing employment agreements are planned to be assigned to Kyocera on June 1, 2010.