Expansion In China

Philips stake in the Chinese television tube producer Hua Fei Color Display Systems has been increased from 30% to 55%. Partners in the joint venture will invest about FI600m to expand production of picture tubes. Hua Fei's current production capacity of 1.7m colour television tubes/year will be increased to 4.3m tubes/year. It will also build a new factory for the proudction of colour monitor tubes with a capacity of 1.4m tubes/year.