Sony has announced that it will cease operations at its Hungarian manufacturing site in Gödöllö, Hungary and transfer production to its manufacturing site in Kuala Lampur, Malaysia. Production will be discontinued by the end of this year. With this move, Sony is aiming to improve its profitability and efficiency in manufacturing.

The Hungarian site, which currently manufactures Blu-ray Disc players and DVD recorders, was established in 1996 while mass production began in 1997. The plant produced batteries, displays, DAV systems, speakers and Micro Hi-Fi systems. This move to transfer operations will result in the loss of 540 jobs.

“The worldwide demand for Blu-ray disc players is expected to expand. By consolidating global production to achieve efficiency and offering customers higher value-added products such as Blu-ray 3D-compatible Blu-ray disc players, Sony aims to increase the competitiveness and profitability of its home video business,” the Sony website said.

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