Sharp Corp has denied a media report that it is in talks with overseas manufacturers for divesting its solar battery plant in Osaka as part of its restructuring plan.
Responding to local newspaper Yomiuri Shimbun report, Osaka-based Sharp said that it is not selling its Sakai solar cell plant.
Sharp spokeswoman Miyuki Nakayama said, "We are not selling the Sakai solar plant, but the company is looking at various possible restructuring steps.
Running out of options of boosting its balance sheet, the paper said that the century-old company is planning to sell its key solar plant and other assets in order to raise around $1.27 billion.
The Sakai solar cell plant produces thin-film solar cells for mega solar power stations and has an annual output capacity of 160,000 kilowatts. The underused facility also makes advanced liquid crystal displays, most of which are sold to the world's largest contract manufacturer, Taiwan's Hon Hai Precision.
The paper also said that the company has initiated the process of selling prime real estate, including its Tokyo branch office building, in the Tokyo metropolitan area.
While the Sakai plant holds one of the world's most advanced LCD manufacturing processes, overseas manufactures may not be interested since other plants in South East Asian countries have lower wages and better currency exchange rates.
Sharp, which started by making belt buckles in 1912 and the Ever-Sharp mechanical pencil three years later, saw its shares plunging to near 40-year low and lost more than $1 billion of its value after it reported huge quarterly losses early this month and warned of more to come.