It was announced in November 1995 that Nippon Electric Glass Co., Ltd. and Sumitomo Corp., of Japan, will establish a joint venture company in Indonesia with a local electronics manufacture to produce…
It was announced in November 1995 that Nippon Electric Glass Co., Ltd. and Sumitomo Corp., of Japan, will establish a joint venture company in Indonesia with a local electronics manufacture to produce cathode-ray tube glass that will become operational from autumn 1996. The new company will be called Nippon Electric Glass Indonesia, with Nippon Electric Glass providing 75%, Sumitomo Corp. 20%, and the Indonesian firm 5%. The company will produce colour cathode-ray tube glass. Production will start at 4-5 million units/year, which will be supplied to cathode-ray tube manufacturers in Indonesia and surrounding countries. Nippon Electric Glass said also that its recurring profit for the current business year to March 1996 will likely reach JPY 12 billion, compared with the initial estimate of JPY 7.5 billion. The recurring profit estimate for the first six months was revised upward to JPY 5 billion from JPY 3.5 billion. The leading maker of cathode-ray tubes based its initial projections with the exchange rate at JPY 85 to the dollar. But the correction of the yen“s excessive strength produced exchange profits. In the second half, the company expects the dollar to trade around JPY 95, helping to narrow the loss on export income. It will also expand shipments of glass-making machines to a joint venture in Britain. Sales for the full fiscal year were revised upward to JPY 232 billion from JPY 220 billion. Those for the first six months were also revised upward to JPY 117 billion from JPY 113.6 billion.