Hitachi, Ltd. today announced that it has decided to form a manufacturing plant in the Czech Republic to meet the expansion of demand for flat-panel TVs (plasma and LCD TVs) in Europe. A new company, Hitachi Home Electronics (Czech), s.r.o., will establish the plant in the Triangle FPD City, which is approximately 80 km northwest of Prague, in the Usti region of the Czech Republic. Initial production in the company will be expected in summer 2007.
The increasing demand for large-scale flat-panel TVs in Europe is estimated to result in 20 million sets being sold in 2008 due to the robust spread of digital broadcasting, according to Hitachi market estimates. Hitachi decided to establish a flat-panel TV manufacturing plant in Europe to increase the company's total production capacity. By setting up a manufacturing plant in Europe, the company hopes to achieve reduced production costs through optimized supply chain management, logistical efficiencies and a stable and consistent supply of product for the European marketplace.
In addition, the new company will cooperate with the LCD module plant IPS Alpha Technology Europe, s. r. o., which will be located next to the new Hitachi facility, to facilitate production efficiencies. Hitachi says that by enabling the production of both plasma and LCD panel modules in adjacent facilities, both companies will benefit from the inherent synergy between Hitachi group companies. Furthermore, Hitachi will establish a design and R&D division in the new company to meet local requirements, such as digital broadcasting and to strengthen its development capabilities in cooperation with the R&D division of Hitachi Europe.
to Daily News