Sony plans to end manufacturing of televisions in Europe this year and will sell its TV manufacturing plant in Spain to two local companies, it said Tuesday. The move, which is part of Sony's ongoing restructuring, will increase the company's reliance on outsourcing companies and it part of a plan to return its core TV operations to profitability.
The deal will see Sony's Barcelona Technology Center split into two companies, one focused on manufacturing and the other on development and engineering. Ficosa International will own the former company and half of the latter company. The remaining 50 percent share of the latter will be owned by COMSA EMTE.
Sony said the sale is expected to be completed by December this year. It didn't provide financial details.
For two years after the sale, Sony will outsource LCD TV production to the manufacturing company and both companies will work with Sony on developing new business, it said in a statement.
The sale follows a earlier deals with Hon Hai Precision Industry that saw the Taiwanese company take over Sony TV plants in Mexico and Slovakia.
Sony launched a wide-ranging restructuring effort last year that has seen it dispose of several divisions and factories. In December 2008 the company owned 58 factories around the world and the restructuring had originally pegged the closure of seven plants, but Sony has been much more aggressive. By the end of this year it expects to be operating 43 factories worldwide.