Sony will merge two of its wholly owned manufacturing subsidiaries, resulting in the closure of an equipment plant north of Tokyo and the eventual layoff of about 100 contract workers, the company said today.

The move, which takes effect on April 1st next year, comes as analysts and investors urge the company to pull off a drastic restructuring of its loss-making television division.

Sony Manufacturing Systems, which makes factory equipment, will be absorbed by Sony EMCS, the electronics giant's main domestic manufacturing subsidiary, which makes items such as televisions and computers at various sites around Japan.

The 411 regular workers at Sony Manufacturing Systems will be kept on at a different site, but 100 non-regular workers will not have their contracts renewed.

The company is considering selling off the buildings and land at the Saitama site, about 60km north of Tokyo, a Sony spokesman said.

Reuters