Sharp looking to sell factories in China, Mexico

Sharp looking to sell factories in China, Mexico

Summary: Japanese electronics company is considering plans to close two TV factories which will affect 3,000 jobs, on top of another proposed 5,000 layoffs.

TOPICS: Tech Industry, China

Sharp is considering plans to sell off two factories, located in China and Mexico, which could result in about 3,000 job cuts.

Citing an unnamed source, a Wall Street Journal report Monday said Sharp was looking to sell two factories which assemble TV as part of talks with Taiwanese manufacturer, Hon Hai Precision Industry.

According to the source, the factory in China employs slightly more than 1,500 workers while Mexican factory has about 1,500 employees.

The Japanese company could sell the plants to Hon Hai or Sharp Display Products which is jointly owned by Hon Hai and Sharp, the source said, adding that both options would affect headcount at Sharp.

If the sale of the factories is finalized, Sharp will be cutting a total of 8,000 positions including 5,000 layoffs announced earlier this month.

Selling its factories is part of Sharp's plans to raise funds to ease some of its debt, as the company is strapped with 1.25 trillion yen (US$12.6 billion) interest-bearing debt.

Taiwanese manufacturer Hon Hai became Sharp's biggest stakeholder after it bought 9.9 percent stake in the Japanese company in late-March.

In August, Hon Hai CEO Terry Gou said the company would persist with its investment in Sharp despite the Japanese company widening its full-year loss forecast.

Topics: Tech Industry, China

Liau Yun Qing

About Liau Yun Qing

The only journalist in the team without a Western name, Yun Qing hails from the mountainy Malaysian state, Sabah. She currently covers the hardware and networking beats, as well as everything else that falls into her lap, at ZDNet Asia. Her RSS feed includes tech news sites and most of the Cheezburger network. She is also a cheapskate masquerading as a group-buying addict.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to start the discussion