HITACHI TO SELL STAKE IN CHINA CATHODE RAY TUBE MAKER

GUANGZHOU, Nov 26, 2007 (AsiaPulse via COMTEX) -- HIT | charts | news | PowerRating -- Hitachi Ltd. (TSE:6501) will end its production of CRTs (cathode-ray tubes) by selling its entire stake in a Chinese joint venture that manufactures them, The Nikkei learned Friday.

This reflects a slowdown in demand for these components as consumers show a growing preference for flat-panel televisions over CRT TVs.

After its stake in the CRT operations are sold, the Hitachi group will focus business resources on such growth areas as plasma TVs.

The group has inked an agreement to sell subsidiary Hitachi Displays Ltd. 's 25% stake in Shenzhen SEG Hitachi Color Display Devices Co. to a locally based investor for 175 million yuan, or around Y2.6 billion ($US24.01 million).

Established in 1989, Shenzhen SEG Hitachi owns several lines that produce 21- to 33-inch CRTs.

It made about six million units annually at its 2003-04 peak.

Hitachi plans to continue selling CRT TVs using CRTs procured from outside sources to some areas, such as Southeast Asia.

Meanwhile, Hitachi is bolstering Chinese output of plasma and LCD TVs. Hitachi Digital Products China Co., a joint venture based in Fuzhou, Fujian Province, is expected to double its production of flat-panel TVs in fiscal 2007 to around 40,000 units.

(Nikkei)

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