Sharp to Downsize European Operations

OSAKA (Nikkei)--Sharp Corp. (6753.TO) plans to curtail its LCD television and solar cell businesses in Europe, focusing instead on such growth markets as Southeast Asia, the Nikkei reported in its Monday morning edition.

The company's European sales came to around Y280 billion in fiscal 2011, but slumped to Y200 billion or so in the year ended March 31. Facing a second straight year of massive net losses through fiscal 2012, the struggling electronics manufacturer seeks to turn its fortunes around with the aid of major lenders. The European downsizing will be part of a medium-term business plan due out Tuesday.

Sharp had expected to sell 1 million LCD TVs in Europe last fiscal year. But sales apparently fell short of the goal, sliding roughly 30% from a year earlier. Sharp's market share there fell to 2.2% in 2012, according to U.S. research firm NPD DisplaySearch.

As part of the retrenchment, the company will consider selling a Polish TV factory whose utilization fell after a consignment arrangement with Royal Philips Electronics NV ended last year.

Sharp also plans to scale back output at a British solar module facility and sharply shrink its sales territory. European demand has plunged as a result of changes to feed-in tariff programs for renewable energy in the region.