TCL: 'cut your wrist to save your life'

[photopress:li.jpg,full,alignright]The Chinese company TCL Multimedia Technology Holdings Limited, the biggest TV maker in the world, has said it will restructure its loss-making European business, cutting jobs and selling off some assets. It said the majority of its employees in Europe will be involved in the restructuring, but would not say how many people will be laid off.

TCL will not make any changes to its only factory in Poland.

Li Dongsheng (seen here earlier this year), chairman of TCL Multimedia Technology, said, 'There are some options for us to restructure this loss-making business, but finally we chose a transformation of the business model.'

Aiming to become a strong global player, TCL and Thomson formed a joint venture called TTE in November 2003. This included TCL's businesses in China and emerging markets as well as Thomson's units in Europe and North America. Too many legacy assets and a traditional distribution channel in the CRT business prevented TCL from keeping up with market change.

In the first nine months of this year its net losses in the period were $202 million dragging the group company's total net loss in the period to $195 million.

Gu Qing, an analyst with Shanghai-based Haitong Securities, aaid, 'The market has been anticipating this decision for a long time and it is not too late to cut your wrist to save your life.'
Source: China Daily

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