Electronics Company Sharp is restructuring its European division and forms a strategic alliance with two other electronics companies based in Europe.
Sharp Corp is looking to restructure its Europe division with announcement of plans on Fri. to cut 300 jobs and also joining two European electronics companies.
The Japanese multinational corporation announced a partnership with Europe-based electronics companies Universal Media Corp (UMC) Slovakia and Vestel Elektronik Sanayi ve Ticaret AS (VESTL.IS)
Universal Media Corp (UMC) would be able to use Sharp's audio and video business while Slovakia and Vestel Elektronik Sanayi ve Ticaret AS' sales unit would be granted use of Sharp's home appliances brand.
Sharp also revealed that it was in discussions with UMC regarding turning over its Polish LCD TV factory to the Slovakia Company.
UMC will be acquiring exclusive brand license rights for Sharp's TV brand in Europe. The deal will involve Sharp contributing design and development of LCD TVs produced and sold by UMC under the company's brand.
UMC foresees the team up as an expansion into a broader, "A-class" market in Europe.
Sharp Corp admitted that the move would be debilitating and affect its second quarter performance. The electronics giant will reportedly have a special loss amounting to a total of 6.4 billion yen ($58.7 million).
However, the company forecasts no change to its full-year revenue reports.
Sharp Corp has been tightening its belt and withdrawing from unprofitable activities since the company suffered a huge blow March last year amounting to 545 billion yen.
Aside from that, Sharp Co also reportedly quit solar panel production in Europe.
Sharp Corp manufactures consumer and industrial electronics which include visual and communication equipment like mobile phones, home appliances, LCD TVs, and electronic parts like solar cells and integrated circuits.
The company currently holds the title of the fifth largest television manufacturer in the world following other giants like Samsung, LG, Sony and Panasonic.
