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Monday, September 01, 2008
LG Display and Amtran Set Up LCD Panel JV

LG Display Co Ltd and Taiwan's Amtran Technology agreed on Monday to set up a joint venture in China to produce flat screen modules and manufacture TV sets for brand makers.

LG Display, the world's second-biggest maker of liquid crystal display (LCD) panels, has sought alliances with Asian TV makers to strengthen its client base and reduce costs.

The LG-Amtran joint venture will be set up in Amtran's existing production base in Suzhou, China, with initial funding of $20 million. LG Display will own 51 percent of the new company and Amtran, maker of Vizio brand LCD TVs, will hold the remaining 49 percent.

The joint venture will produce 3 million LCD modules and 5 million LCD TV sets a year, with operations set to start early next year, LG said. It did not disclose the value of any additional investments to be made.

Amtran built its business by joining with U.S. partner Vizio Inc in 2005 to penetrate the North American market.

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