Thomson, the French electronics company, has signed an agreement with TCL International Holdings Limited, a leading Chinese multimedia consumer electronic products company, to form TCL-Thomson Electronics, a new company for the development, manufacturing, and distribution of television sets and DVD players.
Thomson announced in 2003 a strategy of partnership for the "Mainstream" part of its Consumer Products Division, covering the Group's TV and home video player activities. The goal was to secure a strong and profitable future for its consumer electronics assets. Thompson said the agreement with TCL achieves this strategic goal. Completion of the partnership is also expected to yield positive financial benefits for Thomson and change the Group's financial profile.
The agreement envisages that Thomson and TCL combine their TV and DVD businesses and assets to form a new company, TCL-Thomson Electronics. Thomson would contribute all its television manufacturing plants and businesses in Mexico, Poland, and Thailand, all the DVD player business, and all television and DVD player R&D centers worldwide. Thomson would hold a 33-percent share in the new company. Final closure of the agreement is expected mid-2004.
Separate from the TCL partnership, Thomson said it intends to take advantage of its increasing presence in China to expand opportunities from the fast-growing Chinese market for its Components, Licensing and Content & Network Divisions.
to Daily News