Hitachi to Withdraw from U.S. Color Picture Tube (CPT) Market
Feb 28, 2002 10:57 AM
-- Company to Sell CPT Production Equipment to Thomson; Shift in Manufacturing Focus to Projection Tubes at Greenville, S.C. Plant to Reduce Plant Employment by 270 --
GREENVILLE, S.C., February 28, 2002 - Hitachi,Ltd. (NYSE: HIT) today announced it is withdrawing from color picture tube business in the U.S. as part of the restructuring of its Display Products Group. As a result, Hitachi Electronic Devices (USA), Inc., Greenville, S.C. will shift its primary product focus to projection tubes used in projection TVs and sell its CPT production equipment to Thomson Multimedia. The action will result in a reduction in the company's workforce of approximately 270 production workers and support staff at the Greenville, S.C. plant and field locations. Thomson will transfer the CPT production equipment to its other manufacturing locations.
In announcing the action, Yosuke Nakanishi, president and chief executive officer of Hitachi Electronic Devices (USA) Inc., said, "Changes in our markets have been dramatic and have necessitated a change in our manufacturing focus in the Greenville plant in order to improve the outlook for our operations. These market conditions have dictated that we concentrate on tubes for large screen projection TVs, where we are the world's market leader and where there is strong future growth potential. As a result, the production of direct view color TV tubes is being phased out."
"The action will be effective by the end of April, 2002 and the affected employees will be given severance commensurate with years of service and health care coverage options. We are committed to the viability of our plant, and that means aggressively addressing the realities of the marketplace and seeking new opportunities to expand our business in profitable new markets. We are equally committed to taking care of our people as they make this difficult transition," said Mr. Nakanishi.
The company will be pursuing new-product opportunities that will enhance the company operations.
Hitachi Electronic Devices (USA) Inc., a subsidiary of Hitachi America, Ltd., manufactures and markets electron tubes, projection tubes, and LCD display components. The Greenville plant was established in 1990.
Hitachi America, Ltd. markets and manufactures a broad range of electronics, computer systems and products, consumer electronics and semiconductors, and provides industrial equipment and services throughout North America. For more information on Hitachi America, visit http://www.hitachi.us/.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 2000 (ended March 31, 2001) consolidated sales of 8,417 billion yen ($67.9 billion*). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at http://www.hitachi.com.
* At an exchange rate of 124 yen to the dollar.
Outline of Hitachi Electronic Devices (USA), Inc.
Location: Greenville, S.C.
Capital: $141.0 million (March, 2001)
(100% owned by Hitachi America, Ltd.)
Business: Production and marketing of CPTs, projection ray tubes and marketing of LCD panels.
President & CEO: Yosuke Nakanishi
Employees: 1,000
Outline of Hitachi Electronic Devices (USA), Inc.
Location: Greenville, S.C.
Capital: $141.0 million (March, 2001)
(100% owned by Hitachi America, Ltd.)
Business: Production and marketing of CPTs, projection ray tubes and marketing of LCD panels.
President & CEO: Yosuke Nakanishi
Employees: 1,000