Sharp looking to sell factories in China, Mexico

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.

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.

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