Sharp Hastens European Solar Overhaul With End to Enel Venture

Jul 11, 2014 5:09 am ET

July 11 (Bloomberg) -- Sharp Corp., a Japanese electronics maker, will reorganize its solar-cell business, ending a European venture with Enel Green Power SpA.

A 14.4 billion yen ($142 million) charge related to the reorganization will be booked in the three months ended June 30, Sharp said in a statement today.

Sharp will give up its 50 percent share in Enel Green Power & Sharp Solar Energy S.r.l., a solar-power development business set up by Enel Green and Sharp in July 2010. In return, the statement said Enel Green Power commits to take the share of solar panels the Osaka-based company had promised to take from 3Sun S.r.l., a venture comprised of Enel Green, Sharp and STMicroelectronics N.V. Sharp’s involvement in 3Sun’s manufacturing operations will continue.

Sharp has been scaling back solar-panel manufacturing in the U.S. and Europe. The company said in January that it planned to stop panel production at its factory in Tennessee by the end of March. Sharp also said in December that it would stop making panels at its U.K. plant in Wales.

Sharp plans to expand sales in the Japanese non-residential market by strengthening design and sales.