Flat display manufacturer LG-Philips LCD Co. will set up a joint venture with Nippon Electric
Glass (NEG), the world?s third largest LCD glass supplier, in the Paju Display cluster north of
LG-Philips LCD and NEG signed an agreement to establish a glass polishing and processing
(back-end process) facility on Feb.23 at LG-Philips LCD's Paju site. Glass substrates that are
manufactured during the front-end process are cut and rinsed during the back-end process.
The joint venture will be named Paju Electric Glass. LG-Philips LCD will own a 40 percent
stake in the new company and NEG 60 percent. The two companies will begin the
construction of the new plant with an initial capital of W36 billion (about US$35.2 million) in
April. LG-Philips LCD said the establishment of the joint venture would allow a reliable supply
of core components and cut logistics cost.