Sharp to Double LCD-TV Output Capacity in Spain Oct 27, 2003

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Sharp Corp. has said it will double the output capacity of its liquid crystal display (LCD) television plant in Spain to 40,000 units a month as early as April to meet growing demand for flat-display TVs in Europe.

The production increase reflects the increasing shift in demand worldwide toward more advanced products with large thin displays.

The Japanese consumer electronics maker said it expects sales of LCD TVs in Europe to top its earlier projection of 220,000 for this fiscal year through March. It sold 110,000 LCD TVs in Europe last fiscal year.

Sharp assembles 13- to 30-in LCD TVs at its subsidiary's plant in Barcelona, Spain. With the planned addition of 37-in LCD TVs - the company's largest - to its production lineup early next year, the Spanish plant will be turning out the company's full LCD TV range.

The Spanish unit will also specialize in the production of LCD TVs and stop manufacturing conventional cathode-ray tube (CRT) TVs. It began producing CRT TVs in 1986, but output has fallen to a few hundred thousand units a year due to falling demand.

From next year, the Spanish unit will outsource production of CRT TVs to local companies or import units made in China and Mexico. It plans to halt sales of CRT TVs by the end of 2005 and focus on LCD TVs instead.

Sharp has already halted production of CRT TVs in Japan, but the move to do so in Spain would mark its first at an overseas base.

The company has also said it is considering raising its output capacity for high-resolution small LCD panels in Japan. (Dow Jones)

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