Sharp says to move forward solar cell plant launch

TOKYO, Jan 7 (Reuters) - Japan's Sharp Corp (6753.T) said on Wednesday it would bring forward the start of a new domestic solar cell plant to the end of this year to meet growing demand worldwide for green energy sources to counter global warming.

Helped by investors' recent buying spree in shares perceived as environmentally friendly, Sharp's stock has gained 29 percent since Monday, when the Sankei newspaper initially reported the move.

Solar companies around the world are expanding production capacity rapidly as demand grows.

In Japan, the government will bring back subsidies for solar panel equipment from this month, while in the United States, President-elect Barack Obama has pledged to invest $150 billion over the next decade to build an energy economy that relies on renewable sources such as wind and solar power. [ID:nLN291407]

Osaka-based Sharp, which had previously aimed to start operating the plant in spring 2010, said the company wants to bring forward the plan to meet increasing demand.

"Although the official launch timing is still undecided, we are trying to start operations by the end of 2009," said a company spokesman.

He said Sharp was currently reviewing its capital spending plans for 2009.

Last March, Sharp said it would spend $729 million to build a new solar cell plant in Sakai, western Japan, to better compete with Germany's Q-Cells (QCEG.DE) and other rivals.

The company said at that time that the factory would be capable of housing production equipment for annual output of 1,000 MW. [ID:nT24541]

Shares in Sharp, also the world's No.3 LCD TV maker behind Samsung Electronics Co (005930.KS) and Sony Corp (6758.T), soared 12.6 percent to close at 897 yen, far outperforming the Tokyo stock market's electrical machinery index .IELEC.T which gained 7.2 percent.

Sharp's stocks were also the most active on the Tokyo bourse's first section in terms of turnover. (Reporting by Mariko Katsumura; Editing by Hugh Lawson)