Compal Electronics Inc (仁寶), the world’s second-largest contract notebook maker, yesterday said it planned to spend NT$734 million (US$24.98 million) to acquire Toshiba Corp’s LCD TV assembly plant in Poland as part of the company’s long-term business expansion plan.
Compal plans to complete the acquisition of Toshiba’s LCD TV manufacturing site in Wroclaw by the end of March, according to a filing submitted to the Taiwan Stock Exchange.
Compal said that it will establish a subsidiary, tentatively named Compal Europe Holding, to acquire 100 percent of the shares in Toshiba Television Central Europe (TTCE) in Poland.
"Toshiba is one of Compal's major customers in the LCD TV business. This deal will undoubtedly further strengthen the relationship between Compal and Toshiba," Compal spokesman Gary Lu (呂清雄) said in a statement.
The new factory will help the firm expand its LCD TV manufacturing flexibility, diversify its geographical coverage and generate revenue growth momentum in the future, the company said.
Compal’s shares yesterday closed up 0.43 percent at NT$23.15 in Taipei trading before the company made the announcement.
Meanwhile, the Ministry of Economic Affairs yesterday said it had approved Chinese smartphone maker Xiaomi Corp’s (小米) application to invest NT$3.76 million (US$127,900) in Taiwan.
The ministry’s investment commission director, Chu Ping (朱萍), said Xiaomi will use the money to integrate its local operations, as well as sell its smartphones and provide after-sales services in the following six to 12 months.
Currently, Far EasTone Telecommunications Co (遠傳電信) sells Xiaomi telephones and offers maintenance services in Taiwan.
Chu said that Xiaomi will not be permitted to sell telecommunication, server or any Internet-related equipment in Taiwan.
Additional reporting by CNA