The Kyodo news agency reported earlier that Sharp was looking to sell the plant, which manufactures TVs, including ultra high-resolution models under the Aquos brand.

Sharp has admitted that things are not what they used to be. It warned earlier this week that it will slip into its third annual net loss in four years, and is due to announce a business plan in May in which it is expected to outline how to return to profitability.

Selling the Mexico plant, which could effectively mean an exit from the US market, so this might be seen as a little drastic.

"There are no specific considerations underway regarding any sale of overseas factories, beyond what we have already announced regarding our European TV operations," a company spokeswoman said.

Sharp has licensed its TV brand in Europe to Universal Media Slovakia, effectively exiting the European TV market.