Pioneer Corp and the Asia Optical Group, which is Pioneer's business partner, agreed that they will establish a manufacturing joint venture in Manaus City, Brazil, by September 2011.

The name of the new company will be Pioneer Yorkey do Brasil. Pioneer and the Asia Optical Group aim to achieve an annual sales of ¥15 billion (approx US$194 million) in 2015.

In February 2011, Pioneer do Brasil, which is Pioneer's local subsidiary, and the Asia Optical Group agreed to start a joint effort for parts production. As a result, Pioneer do Brasil, which had been producing car electronics products, etc, was scheduled to manufacture digital cameras on contract and produce parts that are used by both Pioneer do Brasil and the Asia Optical Group.

The latest agreement to establish the joint venture was made based on the agreement made in February. It is aimed at starting (1) production and sales of electromechanical parts, (2) electronic manufacturing service (EMS) and (3) production of digital cameras. After its establishment in September 2011, the joint venture will begin the production of digital cameras at the end of 2011. And a new wing will be constructed in its plant site in the first half of 2012.

Through the establishment of the joint venture, Pioneer aims to strengthen its business structure in the Brazilian market, which is expected to grow rapidly, expand its business and improve quality, costs and delivery time by locally purchasing electromechanical parts. Furthermore, the company plans to reduce material costs by, for example, utilizing the Asia Optical Group's know-how for procuring materials.