February 6, 2015 / 4:08 AM / 3 years ago

Sharp says not considering sale of any overseas factories

TOKYO (Reuters) - Japanese electronics maker Sharp Corp said a sale of any of its overseas factories was not under consideration currently, after a report said it planned to sell its TV manufacturing plant in Mexico next year.

A shopper looks at Sharp Corp's Aquos televisions displayed at an electronics retail store in Tokyo February 3, 2014. REUTERS/Yuya Shino

Kyodo news agency reported earlier that Sharp was looking to sell the plant, which manufactures TVs, including ultra high-resolution models under the Aquos brand, to stem losses amid growing pricing pressure in the global TV market.

Sharp warned earlier this week that it will slip into its third annual net loss in four years, and is due to announce a business plan in May in which it is expected to outline how to return to profitability.

Company sources have earlier told Reuters that a sale of the Mexico plant, which could effectively mean an exit from the U.S. market, was a possibility but no decision had yet been made.

“There are no specific considerations underway regarding any sale of overseas factories, beyond what we have already announced regarding our European TV operations,” a company spokeswoman said on Friday.

Sharp has licensed its TV brand in Europe to Universal Media Corp Slovakia, effectively exiting the TV market in Europe.

A fierce price war has made the global TV market unprofitable for many Japanese electronics makers.

Panasonic Corp said earlier this week that it stopped making TVs in China and was liquidating its joint venture in Shandong, while Toshiba Corp said last week that it would stop making and selling TVs in North America and was considering similar exits from other countries.

Sony Corp has spun off its TV business, although CEO Kazuo Hirai has said the company does not plan to sell or shut down the unit.

Reporting by Ritsuko Ando and Reiji Murai; Editing by Muralikumar Anantharaman

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