Foxconn and Sharp’s new $8.8 billion LCD plant confirmed

Evertiq has previously reported that the companies were looking at the possibilities of constructing a new LCD manufacturing plant in Guangzhou, China. However, now Reuters reports that the investment will happen. Sakai Display Products Corp – formerly Sharp Display Products Corporation – will construct a Gen-10.5 manufacturing plant with a focus towards large-screen LCD. With the aim to have the new plant up and running by 2019, the company reportedly at a signing event with local officials in Guangzhou according to Reuters. The to-be-constructed-plant will have capacity equating to CNY 92 billion (about USD 13.23 billion) a year, the report continues. The massive investment is focused at increasing the production in order to meet an expected increase in demand for larger TV’s and monitors in Asia. Along side Sakai Display Products Corp’s news about the new manufacturing plant Sharp announces that it transferred some of its shares (436’000 shares) in the venture, to SIO International Holdings Limited (and investment firm owned by Terry Gou) for the amount of JPY 17,17 billion (USD 146.95 million). Following this transfer Sharp will hold a 26.71% stake in the venture and increase SIO’s share stake to 53.05% from 37.61%.