Konka
Konka Group Co. Ltd. is a manufacturer of electronics and telecommunication products. The Company is principally engaged in the manufacture and sale of colour televisions, digital mobile phones and the related components.
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Konka breaks ground for new LCD factory
Shenzhen electronics manufacturer Konka (SZ:000016) held a ground-breaking ceremony for its RMB866m LCD module factory in Kunshan, Jiangsu province on February 28. The plant is believed to be the largest of its kind in China. Konka plans four liquid composite moulding (LCM) production lines, plus four joint LCM-TV lines, bringing annual production capacity to 7.2m LCM panels and 3.6m TVs. The Kunshan base will also focus on R&D.
Chinese home appliance manufacturers have developed advantages in sales networks, cost control and some innovations, but in recent years, domestic flat-screen TV manufacturers have seen their market share being eroded by foreign competitors from sales of budget terminals and some more expensive components. Using the new production facility, Konka plans to save costs by reducing packing and transportation overheads, reinforcing profitability.
Since the latter half of last year, more Chinese companies have been planning their own factories to produce such components, such as BOE Technology Group Co (SZ:000725), which plans to invest RMB17.5bn establishing a new LCD screen production facility.
SVA Group is thought to have set up a similar plant in Shanghai with the Japanese multinational Sharp Corporation (TYO:6753). In August, a batch of plasma TV screens left Nanjing Huaxian High-Tech Company’s facility, and a plasma screen plant built by Sichuan Changhong Electric Company (SH:600839) is believed to have started mass production last month.
Eight Japanese electronic giants are expected to suffer losses totalling JPY2 trillion in the fiscal year to March 2009, including Hitachi (TYO: 6501), Panasonic (TYO:6752), Sony (NYSE:SNE) and Toshiba (TYO:6502).
