To Advance into Brazil, AUO and TPV to Establish Joint Venture for LCD Module Plant
HSINCHU, Taiwan, Sept. 17 /PRNewswire-Asia/ --
To provide closer services to customers and to develop the emerging market, AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced to establish a joint venture of LCD module plant with TPV Technology Limited, being the world's largest ODM LCD TV maker, in Manaus, Brazil for panel module assembly and sales business. If the investment plan is approved by the relevant regulatory authorities, the joint venture will be the first project for AUO to advance into the emerging market with its strategic partner. It also demonstrates the new business model of supplying the international brand customer from the local plant. Meanwhile, this JV is the first production base in America for AUO to offer customer in-time services and support after establishing manufacturing sites in Europe.
The joint venture company is set up on the basis of the strategic alliance of combining TPV's well-branded image and business infrastructure in the South American market and the strength of AUO's leading technology in TV panels to maximize each other's competitiveness. The joint venture will be named "Brivictory Industria de Eletronicos Ltda" with the capital of US$ 16 million. AUO and TPV will own 19% and 81% of the shareholding of the joint venture company, respectively. AUO and TPV will contribute the capital investment proportionally.
Brazil is named as one of the countries of BRIC (Brazil, Russia, India and China). It is the largest country in South America and the world's fifth largest country both by geography and by population. Since the 2014 FIFA World Cup and 2016 Olympic Games are scheduled to take place in Brazil, it is expected to boost the LCD TV market locally. AUO will continue providing customers value added services including advancing towards the emerging markets. Besides the collaboration in March 2010 that AUO and TPV established a joint venture of TFT-LCD module production and TV-set ODM, AUO has formed an alliance with TPV again for enhancing its strategic position in the American market and bringing both long-term benefits.
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About TPV Technology Limited
TPV is a leading display solutions provider. The Group designs and produces a full range of PC monitors and LCD TVs on ODM basis for its distribution worldwide. TPV's products add value to customers through cost leadership, timely delivery and superior quality.
Currently, TPV is the world's largest PC monitor and ODM LCD TV maker in terms of unit shipment. It has been listed on both Hong Kong and Singapore stock exchanges.
ABOUT AU OPTRONICS
AU Optronics Corp. (AUO) is a global leader of thin film transistor liquid crystal display panels (TFT-LCD). AUO is able to provide customers with a full range of panel sizes and comprehensive applications, offering TFT-LCD panels in sizes ranging from 1.2 inches to greater than 65 inches. AUO generated NT$359.3 billion (US$11.2 billion) in sales revenue* in 2009 with global operations in Taiwan, Mainland China, Japan, Singapore, South Korea, the U.S., and Europe. Additionally, AUO is the first pure TFT-LCD manufacturer to be successfully listed at the New York Stock Exchange (NYSE). AUO extended its market to the green energy industry in late 2008, and formally founded its Solar Photovoltaic Business Unit in October 2009. For more information, please visit AUO.com.
*2009 year end revenue converted at an exchange rate of NTD31.95:USD1.
Safe Harbor Notice
AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), a global leader of TFT-LCD panels, today announced the above news. Except for statements in respect of historical matters, the statements contained in this Release are "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements were based on our management's expectations, projections and beliefs at the time regarding matters including, among other things, future revenues and costs, financial performance, technology changes, capacity, utilization rates, yields, process and geographical diversification, future expansion plans and business strategy. Such forward looking statements are subject to a number of known and unknown risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements, including risks related to the flat panel display industry, the TFT-LCD market, acceptance of and demand for our products, technological and development risks, competitive factors, and other risks described in the section entitled "Risk Factors" in our Form 20-F filed with the United States Securities and Exchange Commission on May 11th, 2010.
SOURCE AU Optronics Corp.