Sony Strengthens Local DVD Production

By Julian Matthews

Sony Corp of Japan plans to make Malaysia a major global manufacturing facility for digital video disk (DVD) players outside Japan.

Sony (Malaysia) Sdn Bhd managing director Hideo Kojima said the decision was made based on the availability of high technology skills and similar technical processes already in place in the manufacture of CD-ROM drives in the country.

The company has been assembling DVD players since October with imported parts from Japan at the factory located in Bangi, Selangor. The initial production is for the domestic market.

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Sony consolidates, increases local content

By Julian Matthews

In March 1996, Sony Corp announced that it planned to source components from Malaysian companies for its 73 factories worldwide. Sony Corp chief executive officer Norio Ohga said Sony is looking towards sourcing locally instead of depending on Japan for its materials.

Addressing a Sony sponsored procurement forum in Malaysia recently, Ohga says his company recognized the significant growth of the Malaysian component industry in recent years and would make it a top priority to promote procurement of local parts.

The shift in policy to source locally is also expected help tip the trade balance scales in favor of the host country, says Ohga, adding that Sony is expected to lend its expertise to establish the component suppliers and ensure the company’s high production standards are met. Read more