Business / Corporate

Sharp may shutter LED display plant in Hiroshima Prefecture

Kyodo

Sharp Corp. is considering closing a light-emitting diode display plant in Hiroshima Prefecture next year as part of its restructuring efforts under Taiwan’s Hon Hai Precision Industry Co., sources familiar with the matter said Sunday.

The electronics company may consolidate the production line at the facility in Mihara, Hiroshima Prefecture, with a factory in Fukuyama in the same prefecture, which mainly produces camera components for smartphones, the sources said.

Sharp will also study downsizing a liquid crystal display television factory in Tochigi Prefecture, they said.

The company plans to secure the jobs of the approximately 300 employees at the Mihara plant, according to the sources.

Sharp is taking steps to return to profitability in the fiscal year ending in March 2017 for the first time in three years.

Due to continued sluggish sales in LED panels, however, consolidated sales for the same year are expected to drop from ¥2.4 trillion in the previous year.