JDI to Sell Key Plant to Sharp, Apple for 71.3 B. Yen
Tokyo, Aug. 28 (Jiji Press)--Japan Display Inc. <6740>, a struggling maker of small and midsize liquid crystal display panels, said Friday it will sell a key plant in central Japan to major electronics maker Sharp Corp. <6753> and U.S. technology giant Apple Inc. for some 71.3 billion yen.
JDI plans to accelerate its efforts to turn itself around by lowering fixed costs and pushing up profitability through the sale of the plant in Hakusan in Ishikawa Prefecture.
The company will sell the land and buildings of the plant to Sharp for some 41.2 billion yen and the LCD panel production equipment at the plant to Apple, its biggest customer, for 285 million dollars, including the sale value in a related agreement in March.
The land, buildings and production equipment will be transferred to the buyers by the end of October, JDI officials said.
Sharp plans to make the plant a production base for next-generation high-resolution panels in the future. An official at Sharp's public relations office said nothing has been decided on whether to continue employing the workers at the plant.
[Copyright The Jiji Press, Ltd.]