Sharp to reduce solar power operations

Sharp Corp. plans to scale down its domestic and overseas solar cell and power generation operations, except for cell production at its plant in Sakai, Osaka Prefecture.

The company and might also sell U.S. subsidiary Recurrent Energy LLC, which designs and constructs solar energy plants, the sources said Friday.

Sharp's solar power businesses have been performing sluggishly amid an influx of cheap Chinese products.

The company aims to return to profitability on an operating balance basis in the second half of the fiscal 2012 and to log a net profit in the next fiscal year.

Sharp will submit the plan to its creditor banks to receive additional loans of some ¥200 billion. Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ are expected to decide to extend the loans later this month, according to the sources.

The rehabilitation plan includes cutting about 5,000 jobs and downsizing two domestic plants, as announced in August, as well as selling liquid crystal display assembly plants in Mexico and China to Sharp's Taiwanese partner, Hon Hai Precision Industry Co. The struggling company also could start collaborating with U.S. chip giant Intel Corp. in small and midsize LCD operations.

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