Sharp Corporation has commenced operations earlier this month at its brand new Indonesian plant located in Karawang International Industrial City. The company is hoping to set up a stable production supply in the country as it anticipates rising demand for consumer electronics based on the steady growth rate of domestic consumption.

The Karawang Plant will focus on manufacturing large home appliances with current production of washing machines to be complemented by production of refrigerators starting in October. Sharp intends to double its production of refrigerators for the Indonesian market at 220,000 units per month and increase washing machine production by 2.5 times at 140,000 units per month.

The medium-term management plan announced by Sharp in May this year identified as a key management policy the development of ASEAN-centred overseas operations. The commencement of operations at the Karawang Plant is expected to help speed up Sharp's business expansion in the region. Capital investment for the new site is approximately $123 million.

The opening of Karawang Plant is good news for Sharp which announced August last year (see Sharp to shave off 5,000 jobs as earnings dip continues) that it will cut roughly ten per cent of its workforce by the end of the third quarter of this year as it sustained a net loss of $1.7 billion dollars from April to June 2012.

South Korean neighbour Samsung Electronics also gave Sharp a hand back in March when it funnelled a significant sum to improve the struggling Japanese firm's financial health and boost supplies of television and smartphone LCD panels.

Earlier this year, Sharp Chairman Toshi Osawa spoke at the annual Consumer Electronics Show and talked about the company's future banking a great deal on bigger and broader TVs with higher resolution and generally more expensive.

By: DocMemory
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