Hitachi to set up Czech flat TV production plant

PRAGUE, Oct 2 (Reuters) - Hitachi Ltd. <6501.T>, Japan's largest electronics conglomerate, said on Monday it had decided to set up a new European flat-screen television factory in the Czech Republic to meet rising demand and cut costs.

In a statement, the company said the plant would launch production in the summer of 2007 and employ about 1,500 workers.

The factory, based in the Triangle industrial zone about 80 km northwest of the capital Prague, will have capacity of 80,000 flat-screen TVs per month and 100,000 plasma panel modules.

The government agency CzechInvest first announced Hitachi's plan in July, saying the Japanese investor planned to spend about 2.5 billion crowns ($111.8 million) on the factory.

"Hitachi ... is determined to increase its market share in all of Europe," Stephen Gomersall, general director at Hitachi Europe Ltd., was quoted as saying in the statement.

Hitachi said it expected to sell 20 million flat-panel TVs in Europe in 2008.

Scores of foreign manufacturers, including dozens of Japanese firms, have invested in the Czech Republic to take advantage of relatively low labour and other manufacturing costs and favourable location in the middle of Europe.

Hitachi's investment follows a plan by IPS Alpha, a joint venture involving Hitachi, to build a 90 million euro ($114 million) liquid crystal display (LCD) plant at the same site, the industrial zone near the town of Zatec. ((Reporting by Marek Petrus; editing by Paul Bolding; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477)) ($1=.7896 Euro) ($1=22.36 Czech Crown)

Keywords: TECH CZECH HITACHI