Innovation Network Corporation of Japan to buy Panasonic Mobara LCD Display plant
Innovation Network Corp. of Japan is making final arrangements to buy a liquid crystal display panel plant from Panasonic to boost the production capacity of a joint LCD venture it is forming with three manufacturers. Panasonic plans to sell its LCD panel plant in Mobara, Chiba Prefecture, part of Panasonic’s efforts to sharply scale down its loss-making television business. Panasonic and INCJ will later decide on terms and the acquisition price. INCJ will invest in a company to be created by merging the LCD businesses of Sony, Toshiba and Hitachi. Innovation Network Corp of Japan is expected to hold a 70 percent share in new venture, to be named Japan Display K.K. The company, to be established next spring, will make small and medium-size displays.
Panasonic Mobara plant will help the new venture to cut costs and facilitate technology transfers as the plant is located next to a plant that manufactures small and medium-size LCDs run by a Hitachi group.
Panasonic plans to cease production of plasma panels used in some of its televisions at its No. 3 plant in Amagasaki, Hyogo Prefecture, during the 2011 business year. Panasonic will also cut more than 1,000 related jobs through an early retirement program. Innovation Network Corporation of Japan is a public-private investment firm. The firm invests in energy sector and in venture debt. It does not limit its investment in a particular industry only. The firm prefers to exit its investment by selling the shares. Innovation Network Corporation of Japan was founded in 2009 and is based in Tokyo, Japan.