Sanyo buys LCDs from Sharp

Sanyo Electric Co., very recently has made it public that they have started buying liquid crystal display (LCD) panels from Sharp Corp. They are buying these LCD panels for being used in their flat TVs sold in North America. Sanyo says that they have returned to the black for the first time in four years and this has been helped by their robust sales of rechargeable batteries and digital cameras. Sanyo and Sharp are considering joint development of kitchen appliances too.

Sankyo spokeswoman Yuko Hosaka says, "We hope to expand our business by having a mutually complementary relationship with Sharp. Sharp’s strength in LCD is part of that."

Sanyo, with its purchase of LCDs from Sharp since April, is also looking forward to continue procurement from other suppliers. In this regard, Sharp and Sony has been trying to secure a stable source of demand for its LCD panels from rival TV set makers as it aggressively invests in expanding output. Even Sony Corp. and Pioneer Corp. are also planning to buy LCD panels from Sharp.

With its excellent performance in rechargeable batteries and solar cells, Sanyo this time is looking for good business in electronic operation. As a result of this, Sanyo has sold about a million LCD TVs in North America in the business year that ended on March 31. It is also planning to spend 380 billion yen ($3.65 billion) to build a new LCD plant in Japan, scheduled to start production by March 2010. According to a trade report, Sanyo shares were flat at 273 yen and Sharp was up 2.6 percent at 1,875 yen.

Via: Press