Sampo Corp (
The Chinese television manufacturer TCL announced Monday a joint venture with rival Thomson to create the world's largest producer of TV sets. The venture company will be called TCL-Thomson Electronics.
"We don't have details about TCL-Thomson Electronics' product line so far ... but we believe we have a good chance to win more [LCD and PDP-TV] orders from TCL as a result of the deal," Sampo deputy spokesman Kanty Wu (
Sampo has collaborated with TCL for almost a decade, Wu said. The Taiwanese company produces refrigerators for TCL on a contract basis and it has also set up a joint venture with TCL, Rechi Precision Co (
Sampo also manufactures PDP-TVs for Thomson on a contract basis, industry analysts said. Wu declined to confirm the company's partnership with the French consumer electronics company that now owns the RCA brand.
Sampo, which expects to ship 400,000 TVs next year, said it will stick to the strategy of selling brand-name products in Taiwan, while providing outsourcing services for European or US brand-name home-appliance vendors, Wu said.
The new TCL-Thomson venture is likely to bring more orders to Sampo, an analyst said.
The contribution from the original equipment manufacturing (OEM) and original design manufacturing (ODM) side is expected to increase to about 50 percent within the next few years due to the deal, said Chen Yen-liang (
During the first nine months, OEM and ODM businesses accounted for 30 to 40 percent of Sampo's consolidated revenues of NT$17.13 billion.
Another analyst, however, said the creation of the new venture is likely to negatively affect local home-appliance makers while selling their products abroad.
"It's a challenge for local home-appliance makers to sell their products overseas with or without the TCL-Thomson joint venture," said Helen Chen (
"Taiwanese companies can only make a profit by selling brand-name products to local consumers on effective cost control. Without that advantage, they are unable to compete with their international rivals in Europe and North America," she added.
Rival Teco Group (東元) said the TCL-Thomson deal could create an additional hurdle for local companies wanting to sell their branded TV sets to European consumers as the deal will enhance Thomson's edge due to lower production costs in China. But smaller rival Sanyo Electric Co (Taiwan) (台灣三洋電機), said it doesn't see the deal having a serious impact on local companies.
Sampo shares rose by N$0.3, or 1.91 percent, to close at NT$16.0, while Teco were unchanged at NT$12.05 on the TAIEX yesterday. The Hong Kong-listed TCL closed 1.7 percent lower to finish at HK$2.875 (US$0.369).
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The