Sharp To Close UK Manufacturing
Following persistent rumours Sharp Electronics (Europe) Limited, owned 100% by Sharp Corporation, has announced that it will end solar panel production at its Wrexham manufacturing plant, Sharp Manufacturing Company of UK.
The planned closure by the end of February 2014 will result in redundancies for up to 250 Sharp employees, and non-renewal of related agency worker contracts. The decision comes as part of structural reforms in line with the Corporation's Medium-Term Management Plan announced in May 2013, which have been accelerated by the rapid commoditization of the UK and European solar panel markets.
Sharp CEO for Europe, Middle East and Africa, Hiroshi Sasaoka said the decision to close the solar manufacturing facility was difficult to make, but unavoidable in the current business conditions.
"It is with sincere regret that we have decided to end solar panel production in Wrexham. Our employees are our greatest asset, and we have been fortunate to have a loyal, hardworking and committed workforce since we began solar production here in 2004," Mr Sasaoka said.
"The Wrexham facility will continue to produce microwave ovens, and we will be investigating additional products for development."
Mr Sasaoka said that Sharp's European solar business is currently in the process of transforming to ensure its regeneration and long-term growth.
"Sharp will continue its solar sales business in Europe, expanding our customer base, as we move towards a true energy solutions business that draws on our expertise in related areas, including energy storage and management systems."
"Market conditions in Europe have become increasingly severe over the past eighteen months. A 30% drop in the unit price of European solar panels since the beginning of 2012 has left Wrexham's output uncompetitive here in the UK, and in Europe.
"In line with the Corporation's shift in its solar business strategy towards Sharp's domestic market, the majority of panels produced at the plant during 2013 have been sold in Japan. From 2014, production for the Japanese market will be outsourced. This means maintaining capacity of Wrexham's solar production is, regrettably, unsustainable."
