Region

Europe

Sony in outsourcing drive

Electronics maker Sony Corp said it would sell a factory in Spain making liquid crystal display TVs as part of its push to outsource more production and turn its struggling TV operations into a profit driver.

The maker of Bravia flat screen TVs said in a statement it would sell its facility in Barcelona that makes LCD TVs for Europe to Spain-based companies Ficosa International SA and COMSA EMTE SL for an undisclosed sum, Reuters reported.

Sony said it would outsource production of LCD TVs to a new manufacturing company to be established by Ficosa at the site for two years from completion of the transaction, underscoring its “asset-light” strategy for lowering its cost base.

Sony is aiming to turn its TV business profitable for the first time in seven years in the current financial year to March 2011 on the back of cost-cutting and higher revenue, with LCD TV unit sales projected to jump 60% to 25 million.

More outsourcing of production is one of the key strategies of CEO Howard Stringer, who has struggled to restore Sony to a high level of profitability despite a series of large restructurings since taking the helm in 2005.