Sony sets up wholly owned company By Zhang Yu'an (China Daily) Updated: 2004-03-10 09:33
Japanese electronics giant Sony is expected to have a wholly owned company up
and running in Guangzhou, the capital of South China's Guangdong Province by
February 2005.
Becoming the 7th plant run by the firm's EMCS (Engineer, Manufacture and
Customer Service) system on the Chinese mainland, investment in Sony Electronics
Hua'nan Co Ltd will top US$30 million, according to Sony (China) Ltd sources in
Beijing.
The plant, which will mainly be devoted to the development of digital disc
players (DVD), will have a projected output value of about US$230 million in the
2005 fiscal year, according to the sources.
The new plant will also take charge of product design and R&D (research
and development) targetted at the Chinese market. It is therefore expected to
become one of Sony's major R&D centres in China.
Thanks to local design and production, Sony Electronics Hua'nan is expected
to become a springboard for the Japanese company to launch new products and
continuously expand its introduction of more new and more advanced technology to
the Chinese market.
Morio Minoru, chief representative of East Asia Operations of Sony Corp, said
that it is vital for Sony to localize its R&D and manufacturing if the
company wants to maintains its leading role in the Chinese market.
The sizable investment in establishing the Sony Electronics Hua'nan will not
only help Sony expand its business development in China, but also stimulate the
development of businesses in surrounding areas in South China, therefore
contributing to local economic development, he said.
Another major function of Sony Electronics Hua'nan is the procurement of
spare parts and components in China for Sony's global production
facilities.
