Business

Hitachi to end TV manufacturing

Hitachi sign
Image caption Japanese manufacturers such as Hitachi have been hit by the strong yen

Japanese electronics firm Hitachi has said it will no longer make televisions from the end of September.

The tech giant will end production in Japan, having already outsourced overseas TV manufacturing to foreign firms two years ago.

But it will continue to sell its Wooo television brand, which is made by outside contractors.

Japanese TV manufacturers have been hit by increased price competition, and by a strong yen hitting export sales.

Merger

Last week, ratings agency Moody's downgraded both Sony and Panasonic, pointing to losses in the two firms' TV divisions.

In August, it was announced that Hitachi, Sony and Toshiba were to merge their LCD units, creating the world's largest maker of small and medium sized screens.

The operation will receive 70% of its funding, $2.6bn, from the Japanese government.

By joining forces, the three firms will gain more than 20% of global market share, helping them to overtake their main rival in this sector, Samsung.

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