Pioneer and Sharp have signed an agreement to integrate their optical disc operations under a joint company, with the aim of expanding their presence in the Blu-ray Disc market, the two companies said. The joint venture, Pioneer Digital Design and Manufacturing Corp, will be capitalised at 6 billion yen, which will be put up 66 percent by Pioneer and 34 percent by Sharp.

The goal of the new joint venture is "to make more effective use of the management resources of the two companies in the optical disc business field, and to further expand the business in this area, especially in the highly promising Blu-ray Disc market. The new company will develop, design, manufacture and sell optical disc products such as optical disc drives, recorders and players."

The joint venture will be headquartered in the compound of Pioneer's plant in Kawasaki, Kanagawa Prefecture, and will have an initial workforce of 450. Pioneer Digital will develop, design, manufacture and sell optical disc-related products such as drives, recorders and players, starting 1 October. Sales are targeted at 38 billion yen for the first six months to 31 March.

Toshihiko Kurihara, general manager of the components business division at Pioneer, will assume the post of president at Pioneer Digital. There will be five directors: three from Pioneer and two from Sharp.

Story filed 06.07.09