For decades, the city of Yaita in Tochigi Prefecture has served as a production hub for Sharp Corp. Now it's pitching in to boost the struggling company's fortunes by helping residents buy its higher-end products.

The city announced a range of grants on Tuesday that are worth as much as ¥100,000. For example, it will cover 30 percent of the price of a TV that has been assembled in the city if it's purchased at a small retailer in Yaita, a local trade official said. Consumers can also buy non-TV products for smaller subsidies.

"We would like to help boost the company's sales. For 40 years it contributed to the local economy," the official said.

"We hope this will help revitalize the local economy" by supporting local residents and Sharp itself, as the electronics-maker weathers a harsh business climate, he said.

As of May, Sharp employed roughly 400 people from the city's population of about 34,000, the official said.

The campaign will run from July through August. All residents and companies based in Yaita will be eligible for a grant. There will be an age limit for individual applicants: Those younger than 18 are ineligible, although those aged 16 and 17 who work will qualify.

The city will also offer 20 percent of the purchase price, or up to ¥40,000, for other Sharp products at major home electronics retail stores in the city, and 25 percent of the product's price, or up to ¥50,000, to those who buy such products at small retailers.

To receive a grant, they must submit an application form and a copy of a receipt for purchased items, the official explained. There is no limit to the number of items that can be bought, but they must together exceed ¥50,000 in price, the official added.

The city currently plans to allocate ¥20 million of its fiscal 2015 budget to the campaign, and is considering enacting an extra budget for further refunds that will be proposed during the city council's meeting in June.

The official said the initiative is the third of its kind. Residents were offered similar grants for purchases of Sharp products in 2009, amid the global financial crisis, and in 2012 when the company offered early retirement to shrink its workforce.

Sharp's profitability has plunged amid competition with Chinese and Korean manufacturers. Sharp has said it expects to post a ¥12 billion operating loss for its TV business in the fiscal year that ended March 31.

Last week, the company also revealed it will shrink its TV businesses and hand out layoff notices to 3,500 employees in Japan.