Toshiba to sell LCD plant in SingaporeAU Optronics is set to buy a subsidiary of the Toshiba Mobile Display Co, Singapore based AFPD Pte.
AU Optronics will take over AFPD Pte’s large clean room facility and 900 staff. The acquisition is part of a plan by AU Optronics to increase their output of small and midsize LCD panels.
The decision by Toshiba to sell on the subsidiary comes after it closed two money-losing plants in Himeji, Hyogo Prefecture, and decided to sell old production facilities to a Chinese company, the Tokyo Stock Exchange Index, Nikkei, said.
The sale of the Singapore unit will leave the Toshiba group with two LCD plants that manufacture only small and midsize panels: one in Kawakita, Ishikawa Prefecture, and the other in Fukaya, Saitama Prefecture.
Toshiba Mobile is bracing itself for an operating loss of 28 billion yen for the year ending 31st March 2010, with sales declining an estimated 18 percent to 210 billion yen.