Mitsubishi to Scale Back Mobile Phone Business in China
Feb 28, 2006
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Mitsubishi Electric Corp is planning on drastically scaling back its money-losing mobile phone handset business in China and firing about 200 employees, Jiji news agency reported.
The company plans to close three of the four bases held by Mitsubishi Soyea Mobile Communication Equipment at the end of March, the report said.
Headquartered in Beijing, Mitsubishi Soyea was set up as a joint venture in 2001 by Mitsubishi group companies and their Chinese partners. Mitsubishi Electric has a 36 percent stake in the venture.
The Japanese company plans to dismiss some 200 employees while gradually reducing its capital participation ratio, Jiji Press said.
But it wants to remain a stakeholder in the venture as 'a foothold for the future,' the agency quoted an anonymous Mitsubishi official as saying.
No comment was available from the company.
Mitsubishi Electric last week announced a top-management reshuffle as of April 1 to improve the efficiency of management and enhance its operations. (Forbes)
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