The American technological Apple plans to invest 100 million dollars in its supplier of liquid crystal displays (LCD) for mobile phones and tablets Japan Display, immersed in the process of restructuring and economic difficulties.
Apple agglutinated around 60% of the orders of Japan Display in 2018 and would be willing to come to the aid of its supplier after its rescue plan was in the air by the withdrawal of two Taiwanese sponsors (TPK and the CGL group) of a capital injection plan, informed the Japanese newspaper Asahi on Thursday.
The investors of Japan Display enthusiastically welcomed this information advanced by the Japanese media and the actions of the manufacturer soared on the Tokyo Stock Exchange, where at the close of half a session accumulated rise of 18.33%.
The Japanese company is experiencing a delicate financial situation with a significant drop in sales, partly motivated by intense competition from China and the use of OLED technology.
As part of the measures to be adopted in its restructuring, the manufacturer announced in May that it will dispense some 1,000 employees in the coming months, through early retirement, to reduce operating costs.
Japan Display was created in 2012 in a merger promoted by the Japanese Government to integrate the operations of Sony, Hitachi, and Toshiba, and is mainly dedicated to the manufacture of small and medium screens.
Its sales fell by 11.3% in the year 2018, in which it also recorded net losses of 109,433 million yen (1,015 million dollars).
In the fiscal year of 2017, the company’s losses were 247,231 million yen (about 2,300 million dollars).
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