Toshiba Lighting Business to be sold to Chinese Appliance Manufacturer Konka Group
Toshiba Lighting and Technology is exiting the consumer market in China, and will be selling all related business operations to local appliance maker Konka Group, according to a recent Nikkei report.
The Japanese company’s lighting business in China will be sold for more than 1 billion Japanese yen (US $8.79 million). The Toshiba brand will be entrusted to Konka, while the Toshiba group will direct its resources to the Japanese market. The deal is part of the group’s restructuring strategies to strengthen its earnings.
Toshiba Lighting will be selling LED bulb production operations and lighting equipment at three Chinese factories in Hong Kong, Fujian Province and Jiangsu Province on April 1, 2016. An estimated 1,000 factory employees will move to Konka. Meanwhile, the company will retain its industrial and automotive lighting businesses and other applications at the Kunshan location, along with some 300 workers.
The majority of production from the three facilities in China are being exported to Japan, as Toshiba Lighting moves production back to Japan and domestic contractors.
According to the Nikkei report, Toshiba Lighting’s sales reached 143.6 billion yen for the nine months ended in December, and the Chinese consumer’s lighting business generated annual sales of a couple hundred million yen