Sharp to Halt Japan's Only Factory for TV LCD Panels

Economy

Osaka, May 14 (Jiji Press)--Japan's Sharp Corp. is planning to halt operations at its factory for large LCD panels for television sets in the city of Sakai, Osaka Prefecture, western Japan, informed sources said Tuesday.

The company, which has fallen into the red, aims to prevent the red ink from expanding further by scaling back its slumping LCD business, according to the sources.

Sharp is the only company in Japan that makes LCD panels for TVs. The expected operational halt at the Sakai plant means that domestic production of such LCD panels will fall to zero.

A future policy for Sakai Display Products Corp., the Sharp unit that operates the Sakai plant, will likely be included in the parent's medium-term business plan, seen to be drawn up Tuesday. Sharp may be considering steps such as selling the factory, according to the sources.

SDP saw its earnings deteriorate due to price competition with Chinese and South Korean rivals.

[Copyright The Jiji Press, Ltd.]

Jiji Press