By BizLED Bureau
Mar 2, 2016: According to Nikkei report, Chinese local appliance manufacturer Konka Group is buying Japan-based Toshiba Lighting business unit and related business operations.
The deal between the Japanese giant and Chinese maker has been estimated around US$ 8.79 million. Konka will overtake the Toshiba brand, while the resources of Toshiba group will be directed to the Japanese market. One of the most important aspect of this deal is group’s restructuring strategies to strengthen its annual earnings.
Toshiba Lighting will initiate the sellout process of LED bulb production operations and lighting equipment from 1st April, 2016. The process will take place at three Chinese factories in Fujian Province, Hong Kong, and Jiangsu province. Konka will absorb an estimated 1,000 factory employees from Toshiba.
Industry sources cited that Toshiba will retain its industrial and automotive lighting business and other related applications at the Kunshan location. The brand is expected to employ 300 active workers.
Bulk of the production from the three facilities in China will be exported to Japan. This step is taken as Toshiba Lighting takes production to Japan and to local contractors.
According to the Nikkei report, Chinese consumer’s lighting business generated an undisclosed figure while Toshiba Lighting’s sales reached US$ 1.2 billion last year.