"The European LCD TV market has been expanding faster than we expected. We are increasing our production capacity (in Europe) to deal with the growing demand," said Masaaki Takeda, Sharp spokesman.

By the end of this year, the Barcelona plant will stop making traditional cathode-ray tube televisions, he said.

The company also will eventually make similar changes at factories in Mexico and China to stop mass production of cathode-ray televisions, although the exact timing for the move is not set yet, Takeda said.

The company has been reducing domestic production of cathode-ray televisions and plans to only make LCD televisions in Japan by 2005, Takeda added.

Sharp's European sales of LCD TVs are set to surpass its fiscal 2003 forecast of 540,000 units, Takeda said.

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

Sharp's shares in Tokyo ended 20 yen or 1.17 percent higher at 1,727 yen, broadly in line with the Tokyo Stock Exchange's Nikkei 225 index which closed up 1.15 percent.

SPACE.WIRE