Yesterday, Omron announced that it will suspend its subsidiary Omron Precision Technology Co., Ltd (OPT)’s backlight business by the end of fiscal year 2019 (until 2020) and officially shut down its factory in Dongguan, Guangdong, China yesterday.

OPT said in the notice that Omron had carried out structural reforms on the business when the backlight business faced a severe market environment. However, the market environment currently facing this business has undergone tremendous changes. Omron believes that it is very difficult to continue the related business in this case, so it is decided to suspend the business at the end of fiscal year 2019. According to the notice, due to the adjustment of the business strategy, the shareholders and the board of directors decided to dissolve the Dongguan factory in advance and stopped production and operation activities from September 10, 2019.

According to reports, the suspended OPT backlight business is mainly dedicated to the design, manufacture and sale of small and medium-sized LCD backlight units. These products are mainly used for small and medium-sized color LCD screens for mobile phones, car-mounted devices, and computers.

Omron said that in the future, it will continue to strengthen the automation, health care, social public systems business and support for the development of equipment and module business in China to meet the growing new social needs.