FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): August 22, 1996
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Zenith Electronics Corporation
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(Exact name of registrant as specified in its charter)
Delaware 1-4115 36-1996520
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(State or jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
1000 Milwaukee Avenue
Glenview, Illinois 60025
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code (847) 391-7000
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Not applicable
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(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
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On August 22, 1996, the company announced that Americast, the
programming venture of Ameritech Corporation, BellSouth
Corporation, GTE Corporation, SBC Communications and The Walt
Disney Company, has signed a non-exclusive contract for the
purchase by subsidiaries of Ameritech, BellSouth, GTE and SBC
of at least three million digital set-top boxes from the company
for its "americast" home entertainment service. A press release
announcing the foregoing is attached as an exhibit hereto and
the full text of the press release is incorporated herein by
reference.
On August 22, 1996, the company announced (i) that it plans to
build a $100 million state-of-the-art picture tube manufacturing
facility in Woodridge, IL, and (ii) that it will invest $80
million in its Melrose Park, IL, manufacturing facility to
automate existing television picture tube production lines and
to install a new line for computer display tubes. A press release
announcing the foregoing is attached as an exhibit hereto and
the full text of the press release is incorporated herein by
reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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Exhibit No. Exhibit
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99a Press Release dated August 22, 1996, regarding
the Americast deal
99b Press Release dated August 22, 1996, regarding
the expansion plans
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ZENITH ELECTRONICS CORPORATION
(Registrant)
By: /s/ Richard F. Vitkus
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Richard F. Vitkus
Senior Vice President, General
Counsel and Secretary
Date: August 26, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No. Exhibit
- ------------- -------------
99a Press Release dated August 22, 1996, regarding
the Americast deal
99b Press Release dated August 22, 1996, regarding
the expansion plans
Exhibit 99a
americast
FOR IMMEDIATE RELEASE
August 22, 1996
CONTACTS:
Americast Zenith
Jody Miller John Taylor
(310) 234-1414 (847) 391-8181
Hill and Knowlton
Petro Kacur/Tim Scerba
(213) 966-5753/5726
AMERICAST SELECTS ZENITH DIGITAL SET-TOP BOXES
FOR ITS americast HOME ENTERTAINMENT SERVICE
LOS ANGELES - Americast, the programming venture of Ameritech Corporation,
BellSouth Corporation, GTE Corporation, SBC Corporation and the Walt Disney
Company, has signed a non-exclusive contract for the purchase by subsidiaries
of Ameritech, BellSouth, GTE and SBC of at least three million digital set-
top boxes from Zenith Electronics Corporation for its americast (tm) home
entertainment service.
Valued at more than $1 billion, the contract to purchase the Zenith set-
tops underscores the commitment of Americast and its partners to move forward
aggressively to deliver innovative home entertainment to consumers, according
to Stephen A. Weiswasser, Americast chief executive officer.
"Our partners have chosen a very versatile set of platforms that will
give them flexibility in their offer of a broad range of services to the
American people," Weiswasser commented. "These boxes not only match that
diversity, but also will give us the opportunity to begin offering the next
generation in home entertainment as early as 1997."
William G. Luehrs,president of the Zenith Network Systems Division,
said that, with the Zenith boxes, Americast will be able to deploy four
kinds of video networks - "wireless cable" (MMDS), hybrid fiber-coax,
switched digital video (fiber to the curb) and direct broadcast satellite.
"Americast is the first home entertainment company currently requiring
multiple delivery media from essentially the same box design. It brings
a unique vision of the digital future, making this a vey significant venture
for Zenith and for the entire industry," Luehrs said. "By using
interchangeable network interface modules, we're able to address various
business and content-delivery models with a single, very cost-effective
digital set-top design." The digital set-top boxes are planned for
production beginning in the first half of 1997.
Zenith Electronics Corporation, based in Glenview, Ill., has been a
leader in electronics for more than 75 years. Zenith's core business --
Consumer Electronics and Network Systems -- is at the center of the company's
digital strategy, which includes interactive television, Internet TVs,
digital video disc players, digital and wireless cable, cable modems and
HDTV systems.
Americast is the consortium of Ameritech Corporation, BellSouth
Corporation, GTE Corporation, SBC Communications and The Walt Disney Company
created to develop and market the next generation in home entertainment.
Southern New England Telecommunications Corporation has signed a letter
of intent under which the company would join Americast venture as a partner.
The americast service is currently being introduced into selected markets
across the United States. In addition to providing traditional entertainment
services, Americast will offer innovative programming and develop such
features as a proprietary program navigator, video-on-demand, home shopping
and a variety of interactive services.
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Exhibit 99b
NEWS
[LOGO]
From the Office of
THE GOVERNOR
FOR IMMEDIATE RELEASE
August 22, 1996
Contact: 217/782-1441
TDD: 800/785-6055
Fax: 217/524-3701
ZENITH TO EXPAND IN ILLINOIS
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Chicago, ILL. -- Gov. Jim Edgar today joined Peter S. Willmott,
Chief Executive Officer and President of Zenith Electronics Corporation,
in announcing the company's plan to build a $100 million state-of-the-art,
picture tube manufacturing facility in Woodridge, creating about 280
full-time jobs.
The company also will invest $80 million in its Melrose Park
manufacturing facility to automate existing television picture tube
production lines and to install a new line for computer display tubes
(CDTs). The expansion and modernization program is expected to create
120 new jobs in the Melrose Park plant, where the company currently
employs more than 2,800 workers.
"For nearly eight decades, Zenith has been an important member of the
Illinois business community," the Governor said. "In that time, the company
has grown to be a worldwide electronics leader that employs more than 4,000
workers in Illinois.
"Obviously, in choosing a location for this expansion, Zenith had
many options, both in the U.S. and Mexico. Its decision to expand in
Illinois proves once again that our state has the skilled workers, excellent
infrastructure and positive business climate needed by companies growing for
the future."
Willmott commended state and local authorities on their assistance
in making the firm's expansion plan possible. "We at Zenith are proud of
our reputation as an Illinois business leader, a reputation that no doubt
will be enhanced by our new state-of-the-art operation in Woodridge,"
Willmott said. "We appreciate the tremendous assistance from the State
of Illinois, Will County and the village on this important Zenith
competitiveness initiative."
The new Woodridge facility will enable Zenith to add a new production
line in Illinois to make 32- and 35-inch color picture tubes for digital
and high-definition television sets. This, coupled with improvements in
the company's Melrose Park plant, will help Zenith be more competitive.
Both the Governor and Lt. Gov. Bob Kustra, the Governor's senior
economic development advisor, met with Zenith officials as the company
considered locations. Kustra said Illinois will provide job training
assistance, road improvements and tax incentives to assist Zenith with
the expansion.
"Our state is committed to helping businesses expand and grow in
Illinois," Kustra said. "We have developed programs to build upon our
excellent resources to ensure that Illinois remains the location of choice
for tomorrow's business leaders."
Over the next 20 years, this designation is expected to save the company
as much as $19 million in tax credits, utility tax exemptions and sales tax
exemptions.
The Department of Commerce and Community Affairs (DCCA) will provide
up to $600,000 in Industrial Training Program (ITP) grant funds over the
next two years to assist the company in training its workers. In addition,
the Illinois Department of Transportation (IDOT) will provide up to $429,000
in Economic Development Program funds to finance 50 percent of the cost of
construction of an access road from Internationale Parkway in Woodridge to
the new Zenith site. The Village of Woodridge will also contribute to
the road funding and will provide utility tax rebates to the company. Will
County and Valley View School District #365 also have granted tax relief to
Zenith.
The new Woodridge facility will include 325,000 square-feet of floor
area on a 70-acre site. The Melrose Park plant is being expanded by 70,000
square-feet for the new CDT line. The modernization program there also will
include automating various components of the existing picture tube
manufacturing lines.
Zenith Electronics Corporation employs more than 15,000 workers
worldwide, including 4,000 in Illinois. U.S. operations include the
company's corporate headquarters and research center in Glenview, the
Melrose Park color picture tube plant, and a printed circuit board
fabrication plant in Chicago.
Construction is expected to be completed in 1997.
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