LEAD) Samsung Electronics mulls LCD plant in China

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By Kim Young-gyo
SEOUL, Aug. 28 (Yonhap) -- South Korea's Samsung Electronics Co. said Friday it
is considering building an advanced liquid crystal display (LCD) plant in China,
but added no decision has been made.

The company made the announcement in a regulatory filing, responding to a request
earlier in the day by bourse operator Korea Exchange to make public its position
on recent media reports.
The English-language daily Korea Times and vernacular Seoul Economic Daily
reported that Samsung Electronics is in talks with the Chinese government to
build an 8th-generation panel plant in Suzhou, southeastern China, aiming to
bring it on-line by 2011.
The report came a few days after LG Display Co., the world's second-largest flat
panel maker, announced it is pushing to build its first LCD plant in China.
Shares of Samsung Electronics closed at 764.000 won on Friday, down 0.39 percent
from the previous session.
South Korean-based research firm DisplayBank predicted in its report last week
that the Chinese LCD TV market will exceed the North American market by 2011,
largely due to the aggressive economic stimulus packages implemented by the
Chinese central government.
In late 2008, China launched its "Home Appliances to the Rural Areas" campaign to
encourage the purchase of home appliances, including LCD TVs, in a bid to
stimulate domestic consumption, by providing subsidies.
The LCD TV market in China is expected to record a 76 percent year-on-year
increase to hit 22.6 million units this year. In 2011, the figure will reach 36.9
million units, according to DisplayBank.
LG Display has been continuously eyeing the market, building partnerships with
China's local TV makers.
Samsung Electronics, which launched its LCD business in 1991, has commanded the
industry in close competition with LG Display Co.
ygkim@yna.co.kr
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