Sanyo Electric Co., Japan's third-largest consumer electronics maker, said it plans to close a color TV factory in Spain in March 2006, eliminating 165 jobs.
Sanyo is one of the world's largest television makers, but it has been hit by sliding demand for traditional cathode-ray tube (CRT) models and has not been able to establish a solid presence in the fast-growing flat TV market.
The Osaka, Japan-based company reorganized its management team and initiated restructuring last year, saying it would cut 14,000 jobs worldwide, close factories, reduce its debt by 50 percent, and streamline unprofitable business areas.
Sanyo's Tudela, Spain factory was established in the province of Navarra in 1966 to produce CRT TVs for the region and other European markets. In recent years, it has been making some LCD models, but the bulk are still CRT TVs.
In a reflection of the shrinking CRT TV market, the factory expects to produce 230,000 CRT units in the current business year to March, down sharply from 380,000 in 2004 to 2005.
To bolster its ailing TV operations, Sanyo announced in December 2005 that it had signed a memorandum of understanding to form an alliance with an Asian manufacturer, although it has not yet specified the name of the partner. (Reuters)
to Daily News