LG Chem to spend 1.2 tln won to build LCD glass plants

(ATTN: CORRECTS name of German firm to "Schott" from "Schott Solar" in para 4)
SEOUL, July 17 (Yonhap) -- LG Chem Ltd., South Korea's largest chemicals maker,
said Friday it will spend 1.2 trillion won (US$950 million) by 2014 to build
facilities to produce glass sheets for liquid crystal display (LCD) panels.

The investment plan would make LG Chem the second maker of LCD glass in South
Korea after Samsung Corning Precision Glass Co., a joint venture between Samsung
Electronics Co. and Corning Inc. of the United States.
LG Chem aims to generate 2 trillion won in sales from the LCD glass business in
2018, the company said in a statement.
Early this year, LG Chem signed an agreement with German technology firm Schott
to use the German company's technology in producing the glass, a key component
for LCD panels.
"By localizing production of LCD glass, it will help (South Korea) increase its
national competitiveness in the display industry," said LG Chem Vice Chairman Kim
Ban-seok in the statement.
LG Chem expected the global market for LCD glass to grow to some 17 trillion won
in 2018, from an expected 11 trillion won this year.
At first, LG Chem plans to spend 430 billion won to build a production line in
Paju, north of Seoul, by 2012. Two more production lines will be built there by
2014.
If LG Chem starts production, it will heat up competition with Japanese rivals
such as Asahi Glass and Nippon Electric Glass, analysts say.
South Korea is home to Samsung Electronics and LG Display Co., the world's No. 1
and No. 2 makers of LCD panels, respectively.
(END)