Sony Corp announces sale of TV plant to Hon Hai Precision Industry Co.
Sony Corp has announced that it would sell a television manufacturing unit in Mexico to Hon Hai Precision Industry Co., a Taiwanese company. The announcement can be seen as the electronics giant’s efforts to meet the speculative market conditions it was in the last couple of years. Sony will be selling 90% of its shares to the Taiwanese company, thus retaining 10% stake. The sale of the Mexico-based factory is expected to be sealed by March. However, the price of the sale is not known.
Sony has been suffering losses over a billion dollars over the last fiscal year and if this trend continues, losses at a worser scale is predicted. Apparently, the sale of the Mexico-based factory will render 16,000 jobless. Hon Hai Precision Industry Co. is also known as Foxconn and is a leading manufacturer of computer and electronics components and employs over 100,000 employees.
Spokeswoman Mami Imada said that Sony will continue to produce LCD Televisions in the factory with outsourced services.
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