LG Display inks deal to build LCD plant in China

By Lee Youkyung
SEOUL, Nov. 3 (Yonhap) -- LG Display Co., the world's second-largest flat panel
maker, said Tuesday that it has signed a contract to build an eighth-generation
liquid crystal display (LCD) plant in Guangzhou, China.
A total of US$4 billion will be invested in the envisioned factory, which would
start mass production from 2012 and have an annual capacity of 120,000 LCD
substrates, LG Display said in a statement.
To build and oversee the new plant, LG Display and Guangzhou city have agreed to
establish a joint venture, LG Display China, which will be capitalized at $1.33
billion.
LG Display said it will own a controlling 70 percent stake in the joint venture,
while Guangzhou city and a Chinese LCD TV maker, which has yet to be chosen, will
hold the remainder.
The deal is a follow-up on a memorandum of understanding signed between LG
Display and Guangzhou city in August. It awaits approval from the South Korean
government.
LG Display said the factory would be able to meet growing demand for LCD panels
from Chinese TV makers.
According to market researcher DisplaySearch, China is expected to become the
world's biggest LCD TV market with 25 million units in 2009 and 41 million in
2012, surpassing North America and Western Europe.
ylee@yna.co.kr
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