LONDON --- Royal Philips Electronics is selling the manufacturing operations of its Automotive Playback Modules (APM) business to Lite-On IT Corporation of Taiwan. Terms of the deal were not disclosed.
Philips said the remainder of the APM operations, which are no longer seen as core to the conglomerate, would be transferred to a joint-venture between the two companies that will operate under the name Philips & Lite-On Digital Solutions, or PLDS. The transaction is due to be competed in March 2007, subject to normal regulatory approvals.
APM has been developing and making CD and DVD playback modules to suppliers of automotive entertainment systems. The manufacturing operations due to be sold are mainly located in Gyr, Hungary. The activities that will be transferred to PLDS include research and development, marketing and sales and product management activities, which are primarily located in Wetzlar, Germany.
Philips said Thursday (Dec.28) the sale represents another step the company is taking to focus on its Healthcare, Lifestyle and Technology activities supported by the strength of the Philips brand.
In PLDS, Lite-On will replace BenQ Corporation of Taiwan as partner in a joint venture now operating under the name Philips & BenQ Digital Storage (PBDS). Upon completion of this transaction, PBDS will be renamed PLDS.
PLDS will continue to develop, market and sell products to store digital information such as DVD burners and optical drives for the automotive market, with manufacturing outsourced to Lite-On IT and third parties.