JVC 1998 Annual Report Download - page 16

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14 JVC 1998
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Overseas Operations
In November 1997, JVC Beijing Electronic Industries
Co., Ltd. in China completed a new factory for VCRs
and camcorders.
Established in Mexico in 1996, JVC Industrial de
Mexico, S.A. de C.V. is a TV production base for the
North American and Latin American markets, forming a
strategic link in JVC’s optimized world production
structure.
The company’s audio product factory began operations in
November 1997 to meet increasing demand in Indonesia and to
optimize JVC’s world production structure for audio products.
In November 1997, we completed a new VCR and camcorder
factory in China for JVC Beijing Electronic Industries Co., Ltd. With
the completion of this factory, production capability of the com-
pany expanded to one million units annually, strengthening our
response to increasing demand for VCRs in China.
Global Marketing
JVC is building infrastructure to maintain close contact with various
regions of the world, including the major markets of Japan, Europe
and North America as well as the emerging markets of Asia, Central
and South America and Eastern Europe. Emerging markets in par-
ticular are building capabilities as manufacturing bases and turning
into key regions with high consumption potential.
JVC is constructing a global network in five business spheres:
Japan, the Americas, Europe, Asia and China. JVC ASIA Pte. Ltd.
was established in Singapore in 1995, JVC (China) Investment Co.,
Ltd. in 1996, and JVC Americas Corp. in 1997. With the establish-
ment of JVC Europe Ltd. in the United Kingdom in 1998, JVC
completed a localized management structure comprising four
regional headquarters to oversee operating strategies ranging
from R&D, marketing, after-sales service, fund procurement to
management.
World Production Structure in Optimal Locations
JVC aims to construct a world production structure in optimal
locations, taking into account parts procurement, production
costs, market strategy and technological ability, to supply JVC
brand-name products to the world. JVC’s overseas production
ratio grew from 36% to 41% and its local procurement ratio from
23% to 24%, contributing to higher resistance to exchange rate
fluctuations and to greater cost competitiveness.
JVC recently established a television factory in Mexico, a
Components & Devices factory in Thailand, and a DVD disc factory
in the United States. These new facilities are solidifying a position
as critical production bases.
In February 1997, we established P.T. JVC Electronics
Indonesia, an audio and visual product manufacturing company.