© Reuters. Terry Gou, chairman of Hon Hai Accuracy Industry, better known as Foxconn, speaks at a Sharp display room in New Taipei City
TAIPEI (Reuters) – Foxconn thinkings to close pricey and redundant abroad operations of brand-new acquisition Sharp Corp, and give market products using Sharp’s important patents and technology as quickly as possible, said the chief of the world’s biggest electronics maker. Terry Gou, who founded Taiwan’s Hon Hai Precision Industry Co Ltd, the official name of Foxconn, made the discuss Wednesday at his company’s first yearly basic conference considering that announcing the purchase of two-thirds of the money-losing Japanese display screen maker for $3.5 billion. Gou stated all legal procedures for the acquisition will be completed this month, which new management will take charge of Sharp on July 1. “We will start overseas,” Gou said of reorganizing Sharp. “Those incorrect, high-cost joint ventures overseas, we will close them to minimize a great deal of the functional cost, which will cause lower (item) list prices.” The comments come as Foxconn looks for to build on Sharp’s innovation and branding to strengthen its prices power with major client Apple Inc (NASDAQ:-RRB-. For Sharp, the takeover is a lifeline at a time when Japan’s technology business, as soon as synonymous with cutting-edge electronic devices, are being out-manoeuvred by upstart Asian competitors. Gou stated speeding up the improvement of Sharp’s patents into technologies that yield commercially feasible products will belong to the initial restructuring, as will a metrics-based review of all Sharp personnel. In May, Foxconn told Sharp staff members that layoffs were a should and would be carried out “responsibly and sensitively.” An individual knowledgeable about the matter told Reuters at the time that the cuts might total 3,000 in Japan, and more when Sharp’s worldwide operations are included. Gou also stated Foxconn sees growth potential in Sharp’s home devices business. He said Foxconn would work to broaden sales channels in the United States which his company is talking about the matter with a major U.S. wholesaler. Foxconn will likewise work to reconstruct Sharp’s semiconductor company, an area where Sharp as soon as held numerous patents however offered some to plough resources into screen technology, Gou stated. Another immediate task is bringing Sharp’s financial management in line with techniques utilized at Foxconn, Gou said. For instance, two times a year, Foxconn will examine what Gou called the three bads – accounts, workers and materials. “We have very conservative accounting principles,” said Gou. Foxconn’s accounts are inspected from the bottom up, unlike Japanese business which tend to have top down financial management that may include fulfilling earnings targets, Gou said. Disclaimer: Blend Media want to remind you that the data consisted of in this site is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex rates are not provided by exchanges however rather by market makers, and so prices may not be precise and may vary from the real market value, indicating rates are a sign and not appropriate for trading functions. Therefore Combination Media does n`t bear any responsibility for any trading losses you may incur as a result of utilizing this data. Blend Media or anybody included with Blend Media will not accept any liability for loss or damage as a result of dependence on the details including information, quotes, charts and buy/sell signals consisted of within this website. Please be fully notified concerning the dangers and expenses related to trading the financial markets, it is among the riskiest financial investment forms possible.