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
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.