Sharp to build new LCD plant in west Japan

TOKYO: Sharp is nearly set to build its new LCD panel plant in Sakai, western Japan, a source close to the matter said on Saturday, a move aimed at taking on larger rivals such as Sony.   

The comment follows a report by the Nikkei business daily that Sharp, the world's third-largest LCD TV maker by revenues behind Sony and Samsung Electronics, had decided to build a $4 billion LCD plant there.   

Liquid crystal display (LCD) TV makers need to build advanced, cost-efficient plants in a timely manner to beat steep price falls and get ahead of competition.   

Sharp plans to use idle land owned by Nippon Steel Corp. in Sakai, Osaka prefecture, for the new plant, the source said. It is not immediately clear whether Sharp will acquire the land or lease it.   

A Sharp spokesman said it was true that Sharp was considering building a new plant, but nothing concrete had been decided.   

Osaka-based Sharp plans to start construction of the plant this summer, with commercial operations slated to begin by 2009, the Nikkei said.   

Sharp is tentatively planning to process 30,000 glass substrates a month in the initial stage, and to double the capacity to 60,000 units in a few years, the newspaper said.   

It also said Sharp would ask LCD components makers to build their factories around the new LCD plant to improve overall efficiency.   

Such parts makers could include Corning, Asahi Glass, Toppan Printing and Dai Nippon Printing, the paper said.