Sharp's production subsidiary in Barcelona now imports liquid crystal panels and other parts from Japan to assemble 13- to 30-inch LCD TVs for the European market, the Nihon Keizai Shimbun said.

Seeking to increase output capacity for LCD TVs at the subsidiary's factory, Sharp will expand clean rooms and shift personnel, the newspaper said.

With production of 37-inch LCD TVs to begin early next year, the Spanish factory will start making Sharp's full LCD TV lineup, the Nihon Keizai said.

Sharp's European sales of LCD TVs are growing at a rapid clip set to surpass its fiscal 2003 forecast of 540,000 units, it said.

To address this growing demand, the Spanish unit will specialize in production of LCD TVs and stop manufacturing cathode-ray tube TVs, it said.

Starting next year, the Spanish unit will outsource production of cathode-ray tube TVs to local companies or import units made in China and Mexico, the newspaper said.

It plans to halt sales of cathode-ray tube TVs by the end of 2005 and specialize in LCD TVs instead, it said.

Sharp has already halted production of cathode-ray tube TVs in Japan, but the move to do so in Spain would be its first at an overseas base, it said.

SPACE.WIRE