Toshiba to Reorganize Digital Product Facilities

TOKYO -- Toshiba Corporation today announced that it will implement a series of functional reorganizations of its Digital Products business facilities in Japan that will enhance operating efficiency and the performance of its Digital Products businesses, including the LCD TV business. Outside Japan, Toshiba will accelerate the establishment of a global-level development and production system positioned to take full advantage of business opportunities in emerging economies and other high-growth markets on a worldwide scale.

Under this reorganization, Toshiba will carry out the following measures in Japan to enhance the efficiency of design and development, quality and production control and after-sales services.

• Within the year, the LCD TV design and development function at Fukaya Complex, in Saitama Prefecture, will be transferred to Ome Complex in western Tokyo, Toshiba's development hub for PC and tablets. This integration will allow product developers to draw on TV, PC and tablet technologies and accelerate development of fusion products for the global market that meet regional needs and trends, and value-added services. The number of models of digital products and product platforms will be reviewed to bring greater efficiency to design and development and to optimize use of R&D resources.
• Part of technical service operations for LCD TVs in Japan, until now split between Fukaya Complex and Toshiba Multimedia Devices., Co., Ltd., a group subsidiary in Aomori Prefecture, northeastern Japan, will be concentrated at the Aomori site within the year.
• Quality and production control functions for Digital Products businesses will be decentralized and localized at facilities outside Japan, a shift away from currently concentrated operations at Japan's Ome Complex. Toshiba will also continue to reinforce its LCD TV manufacturing facilities and their capabilities in Indonesia, Egypt and other countries and make effective use of ODM production in other countries, as steps toward establishing a highly-competitive, global production system.

Employees in Digital Products businesses affected by the reorganization in Japan will in principle be reassigned within Toshiba Group. This will include transfers to divisions involved in emerging economies and value-added services.

Toshiba's Digital Products business operates in a fast-changing global environment that has recently seen significant demand decline in the Japanese TV market, rapid price erosion, significant demand growth in emerging economies and a diversification of devices with the growing popularity of new devices such as tablets. Toshiba constantly monitors these trends and promotes proactive business transformations that allow it to respond effectively to change. Toshiba will continue to carry out business reform that accelerates the establishment of sound business foundations and improved profitability.