UPDATE 1-Sharp to close two LCD panel production lines

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TOKYO Dec 12 (Reuters) - Sharp Corp (6753.T) said on Friday it would close two LCD output lines making small and mid-sized panels in Japan, and move production to a newer and more cost-efficient plant as the global downturn hits demand for electronic goods.

Sharp plans to cut about 380 temporary workers due to the shift in production, but said it was unclear at the moment how much costs will be reduced through the planned move.

This is the latest in a series of restructuring steps in the electronics sector as companies try to adjust production and boost efficiency in the face of slowing demand and falling prices.

Sony Corp (6758.T) said on Tuesday it will cut 16,000 jobs, curb investment and pull out of some businesses to save $1.1 billion a year. [ID:nT7887]

Sharp said the LCD lines set to be closed in January were built more than 10 years ago, while its Kameyama No.1 plant, which will shift from production of TV panels to output of smaller displays, is one of Sharp's flagship factories.

The world's third-largest LCD TV maker said it is on track to bring onstream its advanced LCD panel factory in the western Japan city of Sakai by March 2010.

Shares in Sharp were down 6.2 percent at 607 yen in afternoon trade, underperforming the Tokyo stock market's electrical machinery index .IELEC.T, which fell 5.3 percent. (Reporting by Yumi Horie and Kiyoshi Takenaka; Editing by Michael Watson)