NEC LCD Technologies Consolidates Manufacturing and Strengthens Operations
For immediate use March 4, 2009
NEC LCD Technologies, Ltd.
TOKYO, March 4, 2009 ---NEC LCD Technologies today announced structural reforms that will strengthen efficiency and global operations through consolidation of manufacturing locations.
The global recession and financial turmoil taking place throughout worldwide markets has caused a substantial reduction in demand for liquid crystal display products. Furthermore, the losses associated with an unfavorable foreign exchange environment, and no short term recovery in sight, have made it necessary for NEC LCD Technologies to take action to reduce fixed costs and achieve a higher level of cost efficiency. It is expected that these reforms will strengthen the company and lead to higher levels of competitiveness in the market.
In pursuit of these goals, NEC LCD Technologies’ Kagoshima plant will close at the end of December 2009, at which time production will be integrated into the company’s Akita plant. This action will eliminate the overlapping functions and operations between the two plants. Moreover, part of the company’s Kanagawa headquarters’ operations will be transferred and consolidated to the Akita plant for additional efficiency. Staffing is also expected to be reduced from 1,190 to approximately 600 by the end of March 2010, achieved primarily through a voluntary retirement program.
“NEC LCD Technologies remains committed to the growth of our LCD business, to the industrial markets that we serve and to our valued customers and partners that have helped us achieve a leading position in the market. Our worldwide business strategy remains unchanged and with the current restructuring we expect to further strengthen our competitive position in the market,” said Toshihiko Ueno, President of NEC LCD Technologies, Ltd. There will be no disruption to the supply of existing products and the company will continue its new product and technology development plans, such as 3D and electronic paper technologies.
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