The two companies have agreed to constructively dissolve their joint venture company, NEC-Mitsubishi Electric Visual Systems Corporation, on March 31, 2005.
For both NEC and Mitsubishi Electric, an urgent need arose to respond to the rapid growth of flat panels used in consumer and commercial display equipment. At the same time, close cooperation with the system solutions development group is becoming a necessity for developing video display products due to the increasing importance of video display equipment in the system solutions business area.
Amid this business environment, NEC and Mitsubishi Electric agreed that it was time to promote their monitor businesses separately through the synergy born from each company’s strategic integration of its individual core businesses with NM Visual’s sales, technical and purchasing capabilities. As a result, NEC and Mitsubishi Electric determined to dissolve their joint venture company, NM Visual.
NM Visual will assume a new company name when it becomes a wholly owned subsidiary of NEC on March 31, 2005. The new company will continue to operate various imaging and display equipment businesses under the NEC brand through cooperation with NEC’s computer and other image display businesses. (Current NM Visual President & CEO, Hirotoshi Matsuda, will become president of the new company.)
From April, as part of its digital media business, Mitsubishi Electric will manage its Mitsubishi brand monitors, which were sold by NM Visual to date. Utilizing the know-how of the Mitsubishi brand monitor business that NM Visual developed mainly in Japan, Mitsubishi Electric aims to create synergy between the monitor business and general digital media business areas such as LCD TVs, visual information systems and video printers.
NEC and Mitsubishi Electric have agreed to continue their partnership in development and manufacturing areas after the dissolution of the joint venture. The new company will maintain business relations with Mitsubishi Electric, which includes its supply of products to Mitsubishi Electric.
