Sichuan TV set maker eyes JV
(Shanghai Daily)Updated: 2006-12-30 16:26 Sichuan Changhong Electric Co Ltd plans to set up a joint venture to produce display components and spare parts for plasma televisions in a bid to raise its manufacturing competence and boost its bottom line.
The Sichuan TV maker will invest US$90 million for a 40 percent
stake in the JV, the company said in a statement to the Shanghai Stock Exchange yesterday.
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Century Shuanghong Display Devices Co Ltd, an 80-20 joint venture between Changhong and China's largest color TV tube maker, Irico Group, will pay US$95 million for a 42.22-percent stake, while overseas investor MatlinPatterson Global Opportunities Partners II LP will pay US$40 million for 17.78 percent, the statement said.
The new JV will produce and sell plasma display panels for flat-screen TV sets.
"The move will enable Changhong to master the core technology of PDP television, hence improving profitability and competence in the domestic TV market," the Sichuan maker said in the statement.
Changhong Electric, the listed unit of TV giant Changhong Group, is restructuring its assets to boost its bottom line.
The company earlier this month announced an assets swap with its parent,
Changhong Group.
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