Sharp might sell Polish manufacturing
Sharp has signed binding agreements with Slovakian company, Universal Media Corporation (UMC) and Turkish company, Vestel Tİcaret A.Ş. (Vestel), to begin alliances respectively on Sharp’s audio visual and white goods businesses in Europe.
Since the global financial crisis in 2008, Sharp’s consumer electronics business in Europe, centred on LCD TV suffered severe losses. Sharp has undertaken a number of measures to effect a turn-around, increasing the efficiency of its sales organisation and reducing expenses.
However, with profitability under continuing pressure, due to increasingly severe price competition in a maturing market. As a result Sharp is entering into a brand licensing agreement with UMC for its LCD TV business, forming part of the audio visual business in Europe, and will transfer control of the Sales and Marketing for its white goods business in Europe to Vestel.
In addition, Sharp agreed to discuss towards the possible sale of SMPL (Sharp Manufacturing Poland Sp. zo.o.), Sharp’s manufacturing base in Poland for LCD TVs, to UMC.