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Jan. 28, 2008

Kyocera is planning to pull out of China's handset market, due to competition from lower-cost producers.

Kyocera recently finalized plans to buy Sanyo's mobile phone business.

Kyocera President Makoto Kawamura said at a news conference "we will strengthen our handset business through synergies with Sanyo in Japan and in North America."

"We decided there was no prospect for our business in China," added Kawamura.

The Japanese phone maker announced that it will hand over 45 percent of its 70 percent stake in its joint Chinese handset venture to partner company China Zhenhua Science & Technology.

It also will give its remaining stake to a company in Hong Kong and forgive $7.9 million in debt.

The handset venture posted annual losses of about $6.6 million to $7.5 million since it began operations a little over six years ago.

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Source: Kyocera

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