Sony Corporation and NEC Corporation announced o­n the 27th that they have concluded a formal contract to for the establishment of a joint venture in the optical disc drive industry, as was announced in November of last year.

The name of the new company is "Sony NEC Optiarc Corporation," and establishment is slated for April 3, 2006. The new company will concentrate o­n the development, design, manufacture, marketing, and selling of optical disc drive products.

Mr. Shinichi Yamamura, current Deputy President of Sony Corporation's Video Business Group, will assume the role of president of the company. The capital investment is 490 million yen, with Sony holding 55% of the stock, and NEC the remaining 45%. The company plans to have around 350 employees. In accordance with the establishment of the new company, Sony and NEC have set April 1st as the date by which they are to separate each of their existing optical disc drive product-related companies, which are to be inherited by the new corporation. 

Inspired by:
http://www.watch.impress.co.jp/av/docs/20060227/sonynec.htm

Sony Press Release (English):
http://www.sony.net/SonyInfo/News/Press/200602/06-017E/index.html

NEC Press Release (English):
http://www.nec.co.jp/press/en/0602/2701.html