Toshiba, Funai form JV in RI

Toshiba, Funai form JV in RI

TOKYO (Dow Jones): Toshiba Corp. and Funai Electric Co. said Thursday they will establish in March a joint venture in Indonesia to manufacture color-picture tubes (CPTs) for television sets.

The new company, provisionally called "Display Device Indonesia", will be capitalized at $40 million.

In terms of shareholdings, including preferred stock, Funai will hold a 65 percent stake in the joint venture, and Toshiba will hold the remaining 35 percent. However, Toshiba will hold 51 percent of the voting rights at the new firm, and Funai will hold 49 percent, the firms said.

The new entity plans to begin manufacturing 20-inch CPTs in January 2002. The plant will have a monthly production capacity of 150,000 units.

All of the products will be supplied to Funai, the companies said.

The joint venture will extend production to include 21-inch flat CPTs some time in the future, Toshiba and Funai added.