Sony Corp said yesterday it would sell a controlling stake in a key television manufacturing business in Mexico to Taiwan's Hon Hai Precision Industry as part of efforts to streamline its global operations.
Sony, which is bracing for a second straight year in the red, would sell 90%of its shares in Sony Baja California to Hon Hai Precision Industry Co for an undisclosed sum, a company statement said.
The Japanese giant will retain a 10%stake in the Tijuana-based business,which employs 3,300 people and will continue to produce Sony TVs for the Americas region under a strategic alliance with Hon Hai.
Like other Japanese high-tech giants,Sony has been badly hurt by the global economic downturn, which has depressed demand for televisions and other electronic gadgets.
The maker of Bravia televisions, PlayStation game consoles and Cyber-shot cameras announced in May its first annual loss in 14 years and is on course to stay in the red for a second year for the first time in half a century.
Chief executive Howard Stringer is slashing 16,000 jobs and axing about 10% of the manufacturing plants in a bid to return to profit in the face of tough competition from rival products such as Apple's iPod and Nintendo's Wii.
Hon Hai Precision Industry, the world's largest contract manufacturer in the electronics sector, makes mobile phones, personal computers and consumer gadgets for companies such as Dell, Nokia and Sony.
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