NEC, Mitsubishi Electric to Dissolve Display Monitor Joint Venture
Feb 21, 2005
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NEC Corp. and Mitsubishi Electric Corp. said they have agreed to dissolve a display monitor joint venture, and to begin separately selling PC monitors and other sorts of display equipment.
The joint venture, NEC-Mitsubishi Electric Visual Systems Corp., was established in January 2000 as a company specializing in PC monitors. Over time it also began producing monitors for medical use and large-size public display monitors.
More recently, NEC and Mitsubishi Electric have confronted the urgent need to respond to the rapid growth in sales of flat panels used in consumer and commercial display equipment, and for developing video display products, the companies said in a joint statement.
"Amid this business environment, NEC and Mitsubishi Electric agreed that it was time to promote their monitor businesses separately," the statement said. It said the joint venture will become a wholly-owned subsidiary of NEC on March 31, and continue operating under an unspecified new name.
Mitsubishi Electric, from April, will sell monitors under its own brand, and as part of its digital media business along with liquid crystal display (LCD) televisions, visual information systems, and video printers.
NEC and Mitsubishi Electric have agreed to continue joint development, and that the renamed company will continue to supply products to Mitsubishi Electric. (AFX)
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