For more information visit: www.toshiba.com
Unedited press release follows:
Toshiba and Egypt’s El Araby to Establish Manufacturing JV for LCD TVs
TOKYO– Toshiba Corporation (TOKYO 6502) announced today that it is reinforcing its TV business in the Middle East and Africa by establishing a joint venture to manufacture LCD TVs with El Araby Group, a leading Egyptian manufacturer and reseller of audio visual and home appliances. The new JV, provisionally called Toshiba El Araby Visual Products, will be located in Cairo, Egypt, and plans to start production of LCD TVs in March 2011. Its activities will range from LCD panel module assembly to the production of finished products.
Toshiba is proactively advancing an initiative to expand its LCD TV business worldwide. In the Middle East and Africa, the company anticipates strong growth in demand for LCD TVs and is promoting a number of measures in response, aiming for a 15% market share in the region in FY2011.
The new manufacturing JV supports Toshiba’s strategy of establishing localized manufacture and supply of finished LCD TVs in the Middle East and Africa, and strengthens its ability to supply products that meet local market requirements and that offer improved cost competitiveness. The plant is also expected to become one of the largest LCD TV manufacturing facilities in the region, and the first to handle LCD panel module assembly through the production of finished products.
The new plant will have an initial production capacity of 600,000 units a year and an initial workforce of about 300. As sales grow, the plant’s capacity will be increased, up to 2,000,000 units a year in FY2013.
Toshiba and El Araby enjoy a long-standing partnership that includes technical collaboration and operation of a sales and marketing joint venture, Toshiba El Araby Home Appliances Marketing Company. Toshiba will promote various programs to bolster its sales and marketing of LCD TVs in this fast growing region, and as part of these initiatives, it will utilize the sales channels of the marketing JV.
Outline of New company
1. Name: Toshiba El Araby Visual Products Company (provisional)
2. Established: January 2011
3. Start of operation: March 2011
4. Paid-in capital: US$10 million (900 million yen)
5. Capital ratio: Toshiba Corporation 51%, El Araby 49%
6. Head office: Cairo, Egypt
7. Number of employees: about 300
8. Business scope: Manufacture of LCD TVs
Profile of El Araby Group
Representative: Ibrahim M. El Araby
Head office: Cairo, Egypt
Number of employees: about 15,500
Business scope: Manufacture and sales of Audio Visual and Home Appliances