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LG Display to build plant in Guangzhou

The South Korean electronics giant LG Display plans to build an advanced liquid-crystal display (LCD) factory in Guangzhou to capitalize on the China's fast-growing flat-screen television market, the company reported yesterday.

The world's second-largest liquid-crystal display maker said in a statement that the company signed a preliminary agreement on Friday with the Guangzhou city government to build the new plant, which is expected to be the biggest in China.

The deal, which is still awaiting approval by the South Korean government and the board of Seoul-based LG Display, is estimated to cost as much as $4 billion, according to Maeil Business Newspaper.

LG Display did not disclose details about the new plant, except that it would be an eighth-generation facility capable of making large-size television panels.

That is three generations ahead of China's most advanced display manufacturing plant, which is owned by domestic LCD maker BOE Technology Group.

Global LCD television shipments increased 27 percent to 30 million in the second quarter, led by demand from China and North America, the research firm DisplaySearch reported last week.

The research firm estimated that the number of LCD TVs sold in China will likely jump 76 percent to 23.6 million this year.

The government's recent effort to offer subsidies to television buyers in rural areas is expected to further stimulate the market.

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 Source : China Daily  Editor: Ivy
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