VILNIUS - A delegation from the Japanese electronic corporation Funai Electric arrived in Lithuania to help the financially struggling TV tube manufacturer, Ekranas, back on its feet.
The Lithuanian Development Agency, which operates under the Economy Ministry, arranged the meeting as part of the government's efforts to save Ekranas from bankruptcy, the daily Lietuvos Rytas reported.
Recently, the mayor of Panevezys, where Ekranas is based, signed a letter addressed to Lithuania's president, government, parliament and banks, warning that 4,300 people would lose their jobs if the company went bankrupt. This, he added, could trigger a social explosion in the town, which already has the highest unemployment in the country.
Ekranas CEO Eimutis Zvybas doesn't hide the fact that his company is hundreds of millions of litas in debt and faces working capital problems.
What's more, local banks refuse to lend money to the ailing manufacturer, according to Lietuvos Rytas.
But on March 1, Ekranas received good news: The Indian-equity Videcon-Thomson, operator of a Poland-based color picture tube plant, said it would join the anti-dumping claim submitted to the European Commission by Ekranas and the Czech Republic's Tesla Ecimex.
The new claimant would strengthen both applicants' positions, Ekranas said.
Ekranas, backed by Tesla Ecimex, applied to the commission after anti-dumping measures were imposed against CPT producers from Southeast Asia in October. The two companies urged the EU executive to impose anti-dumping measures against CPT producers from China, Vietnam, Malaysia, Mexico and Brazil.
The media reported that Ekranas was ready to initiate one more anti-dumping claim against Turkish CPT producers.
Ekranas claims to hold 58 percent of Europe's small sized CPT market, and almost 12 percent of its mid-sized market. In both segments, Ekranas holds 26 percent of the market.
The company posted over 60 million litas (17.39 million euros) in losses for the first nine months of 2005. Sales plunged by 27 percent, to 341.5 million litas in the year 2005.
Funai Electric Co., established in Osaka in 1961, manufactures audio-visual equipment, computer peripherals and other products. The corporation has subsidiary companies in China, Malaysia, Mexico, the United States and Germany. o
