LG.Philips LCD announced today that it has forged a strategic alliance with Toshiba to jointly develop their positions in the growing European LCD TV market.
Under the terms of the agreement, Toshiba will take a 19.9% equity participation in LG.Philips LCD?s subsidiary in Poland currently under construction in Wroclaw, Poland. In addition to this direct investment, the new partnership will allow both companies to work closely together on better aligning new product development and manufacturing goals.
Establishing better global customer alignment is one of the stated goals of LG.Philips LCD. Toshiba will also benefit from this relationship by securing a steady supply of LCD panels from this plant.
Mr. Bon Joon Koo, Vice Chairman and CEO at LG.Philips LCD, said, "Through this strategic partnership, both LG.Philips LCD and Toshiba will build a strong foundation for growth in the European market. We hope it will serve as a model for additional strategic alliances between LG.Philips LCD and global TV manufacturers around the world."
Construction of LG.Philips LCD?s LCD module plant in Wroclaw, Poland, began on June 14, 2006. A module line with annual production capacity of 3 million units is scheduled to be completed by the first quarter of 2007.
According to DisplaySearch, Europe accounted for 41% of the global LCD TV market in 2005 and the European LCD TV market is expected to grow at a CAGR of 35.4% from 2005 and expand more than three-fold by 2009.