Sony, Toyota Industries merge mobile display JVs

Sony Corp. and Toyota Industries Corp. have announced an agreement to integrate the managementof their joint ventures, ST Liquid Crystal Display Corp. (STLCD) and ST Mobile DisplayCorp. (STMD), and establish a new company effective Dec. 1.

STLCD and STMD currently manufacture low-temperature polysilicon (LTPS) TFT LCDpanels for mobile products.

Sony and Toyota Industries established STLCD in October 1997, followed by STMD in March 2005. With this management integration, the companies will unify manufacturing functions to facilitate more efficient and responsive management operations with the aim of reinforcing business competitiveness.

Following its establishment, principal management of the new company will be assigned to Sony, and through a series of share purchase transactions, it will become a wholly owned subsidiary of Sony by March 31, 2009. Sony will have 86 percent share in the new company and Toyota 14 percent upon its establishment on Dec. 1.

Through this integration, Sony will seek to further streamline decision-making and enhance management responsiveness within its mobile product LCD business. Meanwhile, Toyota Industries will concentrate resources on the core business segment such as automobileand material handling businesses, and also leverage experiences and know-how that have been acquired through LCD panel production for the expansion of those businesses.