UPDATE 2-Japan's Sharp to raise LCD panel output capacity

* To expand LCD capacity at Kameyama No. 2 plant by 11 pct

* Responding to strong demand for panels from other TV makers

* No fresh investment needed to achieve ouptut boost

* Shares close down 0.6 pct vs Nikkei's 1.4 pct slide (Recasts after official announcement)

TOKYO, July 9 (Reuters) - Japanese electronics maker Sharp Corp (6753.T) said it plans to boost production capacity by 11 percent at its flagship LCD panel factory in Japan to meet growing demand from other flat TV makers.

Sharp is the world's fourth-largest LCD TV maker and a major supplier of LCD panels to other TV producers.

It will raise output capacity at its Kameyama No.2 LCD plant, which churns out panels for flat TVs from so-called 8th-generation glass substrates, to 100,000 substrates a month from the current 90,000 units.

The capacity expansion will be carried out by improving production efficiency at the plant, and will not involve fresh investments, a Sharp spokesman said on Thursday.

Shares in Sharp, which competes with Samsung Electronics Co Ltd (005930.KS) and Sony Corp (6758.T) in the global LCD TV market, closed down 0.6 percent at 901 yen before the announcement was made, outperforming the Nikkei average .N225, which fell 1.4 percent.

(Reporting by Mariko Katsumura and Kiyoshi Takenaka; Editing by Joseph Radford)