Philips turned off by monitor business
TPV Tech takes over
Royal Philips Electronics will transfer its entire monitor and IT displays business to Hong Kong-based company TPV Technology Limited.
TPV will assume responsibility for sourcing, distribution, marketing and sales of all Philips’ IT Displays activities worldwide and can exclusively use the Philips brand name, in exchange for revenue-based royalty payments.
Philips IT Displays sales amounted to approximately €600m in 2007.
The Dutch electronics group says the agreement with TPV is part of decisive steps to improve the profitability of its television business, which sank deeper into the red recently. The company wants to fundamentally reposition itself in the digital display business and will book approximately €66m in charges in Q2 of 2008 related to these efforts.
Since 1999 TPV has emerged as the largest monitor maker in the world, with a strong position in the People's Republic of China (PRC) market. Last month, TPV Technology Group said it intends to hire up to 1800 people in Poland for its LCD factory and create a technology park for material and components suppliers.
The Philips deal is expected to be completed before the end of the year, subject to regulatory approvals. ®