Toshiba's Joint Venture in Indonesia Starts Manufacturing Color Picture Tubes for TVs

24 June, 1996

TOKYO -- Toshiba Corporation today announced that its Indonesia-based joint venture company, P.T. Tosummit Electronic Devices Indonesia (TEDI), has started pilot production of color picture tubes (CPTs) at its manufacturing facility in the East Jakarta Industrial Park. The first completed tube to leave the line was presented today to the company's president, Mr. Hirofumi Kakiuchi, when he, along with representatives of the shareholders in the joint venture company and his senior managers, visited the plant after the company's first annual general meeting.

TEDI was incorporated in December 1995 with a capitalization of US$40 million. The company is owned 35 percent by P.T. Tabung Gambar Indonesia (TGI) a joint venture of three local TV manufacturers, 28 percent by Toshiba Corporation, 22 percent by Sumitomo Corporation and 15 percent by Orion Electric Co., Ltd. In all, the partners will invest US$100 million in establishing the company and its operations through fiscal years 1995 and 1996, to the end of March 1997.

Following the completion of construction of the facility and installation of equipment this month, the plant has now started pilot production. Commercial production of 14 and 20-inch CPTs will start in August, with total annual production capacity eventually rising to 2.3 million units. Once full production starts, the facility will create a total of 1,100 jobs.

TEDI's output will be sold locally and exported to the world market. In addition to Indonesian TV manufacturers, products will also be shipped to Toshiba's TV manufacturing arm in Indonesia, P.T. Toshiba Consumer Products Indonesia, which will start operation at the end of this month. Its plant is located next to TEDI.

The manufacturing plant has a total floor area of 31,000 square meters and is located on a 11.3-hectare site. As Toshiba's manufacturing and engineering technologies have been transferred to the Indonesian site plant, employees receives a comprehensive training, in readiness for an early ramping-up of production.

Components and materials for CPTs will be purchased locally and within Asia. Asian-sourced content is expected to reach over 70 percent.

Worldwide demand for color TVs is expected to enjoy steady growth, with strong demand in Asia. The Indonesian market is forecast to enjoy particularly strong annual growth of over 10 percent in coming years, to reach 2.5 million units in 1998. TEDI aims to become a key Indonesian-based CPT manufacturer and to make a major contribution to meeting local demand.

The joint venture joins facilities in the U.S. and Thailand as Toshiba Corp.'s third overseas production site for CPTs. Commenting on the new company, Mr. Kakiuchi said, "I really want to thank the authorities, industry and community for offering us all the support that helped us achieve this successful early start-up.
We want our operations to contribute to enhancing Indonesia's wealth."

The Indonesian partner, TGI, is a joint venture of three of Indonesia's leading TV manufacturers: P.T. Hartono Istana Electronics, P.T. Panggung Electronics Corporation and P.T. Topjaya.

Outline of P.T. Tosummit Electronic Devices Indonesia

Established December 1995
Capital US$40 million
Location East Jakarta Industrial Park, Plot 3G, Lemahabang,
Bekasi 17550, Jawa Barat, Indonesia
President Hirofumi Kakiuchi
Employees Approximately 1,100 (August 1996)
Site area 11.3 hectare
Floor area 31,000 square meters
Products 14- and 20-inch CPTs for TVs

Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.