About SDP Plant Closure FAQ
Key message:
The latest development involving the SDP plant is part of our business development strategy to optimise our plants and utilise our company’s strengths to remain competitive in today’s dynamic market environment.
1. What is the cause of the SDP plant closure in Osaka?
● The latest development involving the SDP plant does not impact the TV market in this region
● SHARP continues to focus on building a sustainable business for the long term and therefore our business development strategy remains on optimising our plants and utilising our company’s strengths to stay competitive in today’s dynamic market environment.
2. How many employees have been laid off due to the closure?
● The market in this region is not impacted by the developments at SDP.
● R&D is a key element to the brand’s growth. This is SHARP’s strength and what drives our innovative brand offerings that customers have come to love.
3. Are there any closures expected for other similar SHARP-related production plants?
● SHARP is a critical contributor in fulfilling the region’s demand for innovative display technology.
● The market in this region remains vibrant and SHARP is focused on growing customers’ interest with our diverse product portfolio.
4. What does SHARP plan to do with the asset? Will it be repurposed?
● We can assure the market in this region that SHARP is a critical contributor in fulfilling the region’s demand for smart and innovative display technology.
5. Will the closure of the SDP plant impact the supply chain for LCD products in ASEAN/ MEA ?
● This region is unaffected as the ASEAN/ MEA region continues to show opportunities for growth.
● SHARP’s optimism in this region is demonstrated through our continuous investment into the R&D that fuels our product innovation.
B) SHARP TV Business
Key message:
SHARP is a critical contributor in fulfilling the region’s demand and appreciation for smart and innovative display technology. SHARP’s ability to anticipate the market’s demand continues to drive our efforts in strengthening our LCD panel display business proposition by focusing on product design and Innovative Artificial Intelligence (AI) image upscale.
6. Is SHARP ASEAN/MEA considering asset rationalisation strategies to navigate the challenging LCD market demand (e.g. factory closures, lay-offs etc)?
● SHARP is committed to long term growth. Our focus remains on business strategies that optimise our operations and drive growth through innovation.
● This will ensure the business remains competitive, agile and resilient amidst a dynamic marketplace.
7. What is SHARP’s strategy to remain relevant in the region amid stiff competition?
● We intend to capitalise on growth opportunities by putting forward unique featured products to delight our customers.
● For the ASEAN region, we intend to provide a diverse line-up of offerings from small to large size models, and a shift to value-added models (e.g. Smart TVs, high resolutions, large sizes) as well as strengthening solutions.
8. How is the ASEAN/MEA impacted by the closure of SDP?
● The TV business in this region is not impacted by the Japan market developments.
● SHARP’s ability to anticipate the market’s demand continues to drive our efforts in strengthening our LCD panel display business proposition.
● We do this by focusing on product design and Innovative Artificial Intelligence (AI) image upscale.
9. Is ASEAN/MEA a growth market for SHARP?
● ASEAN/MEA is a market with a lot of growth potential.
● As a legacy brand, SHARP understands the market’s needs well and is able to match this demand with a compatible product portfolio backed by our brand’s signature innovations.
10. Will Sharp stop selling TV?
● No. Sharp views its TV business as an important part of its existing Brand Business which forms a positive cycle for our sustainable growth.
● In 2024, our focus is to expand our overseas TV business that includes ASEAN/MEA by collaborating with others.
C) Industry
Key message:
From a business perspective, SHARP remains proactive in our approach to build a sustainable business. This includes fostering strategic supply chain partnerships to optimise our production to stay competitive.
11. What are the emerging trends observed by SHARP in relation to the LCD/LED panel industry?
● The growth in online gaming and entertainment keeps audiences in front of televisions, tablets, and smartphones longer. As a result, they are demanding better visual experiences, which drives innovation in display technologies.
● SHARP is actively capitalising on this demand with offerings that improve display performance, giving customers an immersive visual experience.
12. Considering these emerging trends, how is SHARP positioning itself to remain a top of mind brand?
● Our keen sense of the market’s changing needs and the brand’s investment in R&D keep SHARP ahead in the market with relevant product offerings that feature the latest in display performance technology.
● In fact, latest AQUOS MINI XLED showcase today feature AI-Super Resolution, an intelligent upscale of images to produce much richer images giving users a True-to-Life viewing experience. This is a testament to our commitment to driving TV growth in the region.
13. What is SHARP’s approach to mitigating risks to enhance supply chain security?
● Our approach to navigating the impact of global headwinds on supply chain is to develop an ecosystem through collaboration with like minded players within the value chain.
● This approach enables us to optimise our assets and leverage on the complementary assets and expertise of our synergies in a manner that makes the business more efficient and agile.
14. With rising costs of raw materials and rising costs of living, how does SHARP address profitability and pricing strategy?
● Customers are willing to invest in technologies with enhanced features that elevate their experience.
● With this in mind, SHARP is committed to innovating solutions that are at the forefront of display technologies.
15. What is SHARP’s ratio of investment in relation to R&D vs other aspects of the business (e.g. network development, branding and marketing etc)?
● In the Medium-term Management Direction on May 14, Sharp views its TV business as an important part of its Existing Brand Business to form a positive cycle for our sustainable growth.
● Sharp will focus more on value-added models (Smart TVs, high resolutions, large sizes) as well as strengthening solutions in the future.
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