Toshiba Corp. has announced that it would end production of LCD TVs at Dalian Toshiba Television Co., Ltd. (DLTV) and close down the plant by end of December this year. Toshiba will outsource production of its TV sets for Japanese and Chinese markets to contract manufacturers, which will cut costs and reduce risks significantly.
The decision was taken as part of Toshiba’s measures to reform and return to profit its Visual Products business. Going forward, the company will optimize a balance between in-house production and production by original design manufacturer (ODM) partners, as a means to cut fixed costs and enhance operational efficiency.
Production of TVs manufactured at DLTV for the Japanese market will be shifted to ODM, and Toshiba will continue to supply TVs to the Chinese market through a partnership with a local manufacturer.
Toshiba is reforming its LCD TV business by promoting a facility-light strategy as a means to improve profitability. The company recently announced their transfer of ownership of its Polish TV plant to Compal, and the closure of DLTV is the final phase of restructuring the business. Toshiba aims to see profit in its Visual Products business in the second half of this fiscal year.
Toshiba’s DLTV was established in July, 1996. At present the plant employs 900 employees.