Japan Display in Talks to Sell Key Plant to Sharp
Tokyo, Dec. 27 (Jiji Press)--Japan Display Inc. <6740>, a struggling maker of small and midsize liquid crystal display panels, is in talks to sell its mainstay plant in the city of Hakusan, Ishikawa Prefecture, central Japan, to major electronics maker Sharp Corp. <6753>, it was learned Friday.
LCD panels for U.S. technology giant Apple Inc., JDI's largest customer, were manufactured at the Hakusan Plant. JDI suspended the plant's operations in July amid sluggish demand and had been exploring ways to utilize the facility.
By reducing fixed costs through the sale of the Hakusan Plant, JDI apparently aims to improve its cash-flow situation.
In a statement released on Friday, JDI said that the company is considering all options regarding the handling of the Hakusan Plant and that nothing has been decided.
Sharp, also in a statement released on Friday, said the firm is carefully examining how the possible acquisition of the Hakusan Plant would contribute to its earnings and whether the deal would pose any risk to its business operations.
[Copyright The Jiji Press, Ltd.]