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Sharp May Sell Plant In Jakarta To Cut Costs

Fri, 02/28/2014 - 10:37am

OSAKA (Kyodo) -- Sharp Corp. is considering selling its Pulogadung plant in Jakarta after terminating the production of liquid crystal display televisions and other home appliances to slash costs, sources close to the matter said Friday.

To compete with South Korean rivals, the company plans to concentrate its local production at its plant that began operations last fall in Karawang in the suburbs of the Indonesian capital.

Sharp began manufacturing products mainly for Indonesia in 1971 at the Pulogadung plant, located in an area of about 130,000 square meters.

While ending washing machine production there in February, the Japanese company will also terminate that of refrigerators by spring next year. The company is expected to transfer the production of LCD TVs to the Karawang plant later.

However, it is possible Sharp may rent out the plant rather than sell it, depending on conditions, the sources said.

Backed by rapid economic growth, demand for home appliances is expected to surge in Indonesia and the company plans to bolster the production of refrigerators and washing machines, for which it currently has the biggest market share.

Since the new plant in Karawang built on an area of some 310,000 square meters still has extra space, the company is mulling expanding production facilities there.

Among other Japanese manufacturers focusing on the Indonesian market, Panasonic Corp. is developing products that would fit the local lifestyle under the leadership of an Indonesian employee, while Toshiba Home Appliances Corp. has aimed to increase sales through its setup of a new plant for washing machines in 2012.

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