By Rhiannon Zanetic

This week Sony announced it will sell its Barcelona Technology Centre, which manufactures LCD TVs for the Europe region, to Ficosa and COMSA EMTE.

The company said that its European subsidiaries have agreed with Ficosa and COMSA EMTE to sell the centre, as part of an on-going initiative to enhance its manufacturing efficiency and improve the profitability of its LCD TV business.

Following the transaction which is planned to be completed by the end of December 2010, the Barcelona Technology Centre will be divided into two new companies, one focusing on manufacturing and the other on development and engineering.

The manufacturing company will be wholly-owned and operated by Ficosa, while the development and engineering company will be a 50:50 joint venture between Ficosa and COMSA EMTE. The new companies intend to maintain the employment of the majority of employees currently at the centre.

Sony will source LCD TV production to the new manufacturing company for two years after completion of the transfer. Both the new manufacturing and engineering companies will concurrently develop new businesses.

While Sony expects to incur a loss in connection with the transaction for the rest of the current fiscal year, no material impact is anticipated on the company’s consolidated financial results forecast for the current fiscal year, as such loss has been included in the forecast as a part of the 75 billion yen of estimated restructuring charges.