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Sony to Shut Blu-ray Player Factory in Hungary

Will move production to its plant in Malaysia

Sony Corp. said on June 2 it would close its Blu-ray player factory in Hungary and move production to its plant in Malaysia to help improve profitability.

The plant in Godollo, Hungary, established in 1996, will shut at the end of the year with the loss of 540 jobs and its operations will be transferred to the company's Kuala Lumpur site, Sony said.

"The worldwide demand for Blu-ray disc players is expected to expand. By consolidating global production to achieve efficiency and offering customers higher value-added products such as Blu-ray 3D-compatible Blu-ray disc players, Sony aims to increase the competitiveness and profitability of its home video business," it said.

In May, Sony said it expected to return to profit in the current financial year on the back of tough restructuring measures and a pick-up in demand as it looks to aggressively launch 3D televisions and related products.

Copyright Agence France-Presse, 2010

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