A television-manufacturing joint venture between France's Thomson SA and China's TCL International Holdings Ltd. and will produce 20 million TVs by year-end, resulting in U.S. $4 billion in revenue, a top executive said.
Charls Zhao, CEO of the venture, TTE Corp., made the forecast at a ceremony on July 29 formally establishing the venture.
The Chinese company agreed last year to buy most of Thomson's loss-making television operations as well as its DVD player business. TCL owns 67 percent of the joint venture and Thomson the other 33 percent.
Based on 2003 operational figures of TCL and Thomson, TTE would have combined TV sales of 18.5 million units and revenue of about EUR 3 billion (approx. U.S.$ ). Its market share in Europe, the U.S., and China would be 8 percent, 12 percent, and 19 percent, respectively.
Thomson Li, chairman of TCL International and TTE, said the joint venture will aim to maintain its market share in China of around 20 percent in the coming years, with expectations of expanding market share in Europe and the U.S. to around 15 percent to 20 percent. He didn't give a time frame for achieving such targets.
TTE will begin operations in August. The two joint venture partners aim to break even within the next 18 months in North America and Europe. (Dow Jones)
to Daily News