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Toshiba to Establish New Production Base for TV Business in Europe

13 September, 2006


WARSAW—Toshiba Corporation today announced that it would strengthen its liquid crystal display (LCD) television business and expand sales in Europe by establishing Toshiba Television Central Europe Sp. zo. o., a new production and sales company for LCD TV, in Kobierzyce, near Wroclaw, Poland in September 2006. Representatives of Toshiba and the Polish Ministry of Economy today met in Warsaw and signed a letter of intent on Toshiba’s investment.

Global demand for LCD TVs has doubled every year since FY2001. Demand growth is particularly strong in Europe, already the world’s largest LCD TV market, and is expected to expand from almost 8.7 million units in FY2005 to approximately 33 million units FY2009*1.

Toshiba currently manufactures LCD TVs in Europe at Toshiba Information Systems (UK) Ltd. (TIU). The establishment of Toshiba Television Central Europe Sp. zo. o. as an additional production base will support Toshiba in meeting demand and reinforcing its presence in the pan-European market. The total investment in the Kobierzyce plant will reach about 6 billion yen over five years, and production will start in August 2007. Toshiba targets combined production at Kobierzyce and TIU of some 3 million units by FY2009, with the main focus on large sized LCD TVs with screen sizes of 32-inches and above.

Located in the south of Poland, about 8km from Wroclaw, Kobierzyce has favorable infrastructure, including access to highways and major trunk roads, that will provide a logistical advantage in pan-European sales and in overall supply-chain management, including procurement of key parts, such as LCD modules, and efficient production. The Wroclaw region is also home to a number of universities that Toshiba will draw on to recruit talented engineering and technology staff.

Toshiba plans a rapid ramp-up of capacity at the Kobierzyce plant, and to win an increased share of the European LCD TV market.

Outline of new company
Company : Toshiba Television Central Europe Sp. zo. o.
Initial Capital :

100 million yen (wholly owned by Toshiba Corporation)

Location :

 Kobierzyce, Poland

Established :

September 2006

Start of production : August 2007 (plan)
President :

 Yuji Komori

Site area: Approx : Approx. 226,500 square meters (plan)
Employees : Approx. 1,000 by 2010
Business : LCD TV manufacturing and sales and marketing

*1 Toshiba’s forecast

About Toshiba
Toshiba, a world leader in high technology, is a diversified manufacturer and marketer of advanced electronic and electrical products spanning information & communications equipment and systems, digital consumer products, electronic devices and components, power systems, industrial and social infrastructure systems, and home appliances.
Under its mid-term business plan, Toshiba is promoting initiatives for sustained growth that will support its continued development as a highly profitable group of companies active in both high growth and stable growth businesses. Toshiba has 172,000 employees worldwide and annual sales of over US$54 billion. Visit Toshiba's web site at www.toshiba.co.jp/index.htm


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