August 28, 2007
Sony launched a new logistics center in Taichung earlier this month, underlining its growing cooperation with Taiwan LCD manufacturers.
The new center, which occupies a space of approximately 3,300 square meters at the Taichung Harbor Export Processing Zone, is one of Sony's three global logistics bases for the export of its LCD TVs. The other two centers are located in South Korea and Shanghai.
Sales volume for Sony's Bravia TV is expected to reach 10 million units this year, with 30% of LCD panels procured from Taiwan flat panel manufacturers, said Takashi Fukuda, executive president of Sony's TV business group at the inauguration ceremony of new center.
AU Optronics (AUO), one of Taiwan's top TFT-LCD manufacturers and Sony's main supplier, is expected to benefit as Sony's increasing shipments mean expanded procurement in Taiwan. AUO has received a set of flat panel orders for 40", 37", 32", 26", and 20" inch TV panels from Sony.
AUO recently started shipping 46 inch panels, representing one of Sony's biggest transactions with Taiwan manufacturers in recent years.
Sony's decision to locate its logistics center in Taichung clearly reflects its strategy of being closer to major flat panel manufacturers, said an Economic Daily News report. The Central Taiwan Science Park, which is located in the area, is the home of major manufacturers such as AUO and Chunghwa Picture Tubes and an important production center for LCD panels.
In addition to Fukuda, the inauguration was attended by a number of government officials and company executives, including Sony Taiwan's Chairman and Managing Director Kenji Sakai, Council for Economic Planning and Development Chairwoman Ho Mei-yeh, Minister of Economic Affairs Steve Chen, and AU Optronics chairman Li Kun-yao.
Sony's new logistics center creates a new operations model for the Export Processing Zones, and will help create growth for Taiwan panel manufacturers, said Ho Mei-yueh.
As market competitiveness for LCD TVs continues to grow day by day, effective logistics management has become an essential factor in obtaining the market edge, noted Fukuda. The new logistics center will help Sony and AUO strengthen their cooperative relationship, improve global LCD market competitiveness, and create a win-win situation for both companies, he said.
Sakai noted that Taiwan's flat panel industry has developed rapidly, with quality and technology both reaching standard levels. Sony's decision to form a logistics center in Taiwan indicates its hope to strengthen its cooperation with Taiwan manufacturers, he said.
(Economic Daily News)
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