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Nokia Announces Final Sale of its Television Manufacturing Business
July 17, 1996
Following the Heads of Agreement signed and disclosed June 12, 1996, Nokia and Semi-Tech (Global) Company today signed an Agreement by which Nokia has sold its television production and related technology units in Turku, Finland, along with the machinery and equipment of the Bochum television factory, to Semi-Tech.
The final agreement includes the rights to use of Nokia´s television and video-recording related technology, the brand rights for Finlux, Luxor, Salora, Schaub-Lorenz and Oceanic, and the right to use the brand name Nokia in televisions and VCRs based on Nokia technology until the end of 1999. The final agreement also includes Nokia´s international television sales activities in Europe and Nokia´s television related R&D center in Bochum, Germany.
The closing of the Nokia television manufacturing related businesses in Germany will proceed as planned, with manufacturing to be terminated in September, 1996.
Following the agreement, aproximately 750 Nokia employees in Finland and aproximately 500 employees in other European countries join the staff of Semi-Tech.
"The total financial impact of the discontinuation of the television business will be known once our manufacturing in Germany terminates and our sales operations in Europe are transferred. Any potential negative impact has been covered by the charge in Nokia´s financial statements in 1995, and the actual costs/gains will be disclosed in the year end financial statements for the year 1996," says Mr Tapio Hintikka, President of the Nokia General Communications Products Business Group.
Semi-Tech (Global) Company Limited is controlled by Semi-Tech Corporation, a publicly listed company based in Toronto, Canada with its shares traded on the Toronto Stock Exchange and the Montreal Stock Exchange. Semi-Tech Corporation is the ultimate parent company of the Semi-Tech Group. The consumer electronic arm of the Semi-Tech Group, Akai Electric Co. Limited manufactured over five million TV-sets last year.
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