Taiwanese computer company Compal has announced that it acquired Toshiba's LCD TV assembly plant in Mexico and the asset transition is expected to be completed in the third quarter of 2011.

This move will reportedly help Compal gain more orders from Toshiba and other Japanese TV brands.

Rock Hsu, chairman of Compal, said that Toshiba is a customer of Compal and the transaction is a win-win deal for the two parties. However, Compal refused to disclose the financial details.

The new plant in Mexico is expected to promote Compal's expansion of its LCD TV business. In addition, according to the North American Free Trade Agreement, the plant enjoys tariff preference when selling products to the U.S., because it is located on the border of Mexico and the U.S.

Compal reportedly assembled and shipped five to six million LCD TVs in 2010. As Compal's third largest client, Toshiba may order at least two million LCD TVs from Compal this year and Compal's overall shipment is expected to reach eight million.