LG Display held an opening ceremony of its first overseas LCD panel fabrication plant in Guangzhou, China, expanding its presence by adding to its existing module assembly plant in the city.
With plans to mass produce 40-plus-inch large-size LCD panels for TVs in the 8.5th generation plant, LG Display will further enhance its competitiveness in China, the world’s largest LCD TV market.
The new 8.5th generation (2,200mm x 2,500mm) LCD panel plant will be operated by LG Display China (LG Display China Co., Ltd, LGDCA), a joint venture between LG Display, the Guangzhou Development District (GDD), and Skyworth, one of the leading Chinese TV manufacturers and strategic partner to LG Display. LG Display contributed 70 percent of the $4 billion investment in the plant on the 330,000? site, while GDD and Skyworth contributed 20 percent and 10 percent, respectively.
"By operating our first overseas LCD panel plant in China, which has now became the world’s biggest TV market, we are going to further strengthen our position in the country," said Dr. Sang Beom Han, CEO and President of LG Display, at the ceremony attended by top executives from LG Group, representatives of major Chinese TV manufacturers and government officials from China and Korea. "Based on our success in China, LG Display will continue to lead the global display market," he added.
The LG Display China facility will mainly focus on producing 42-inch, 49-inch and 55-inch Ultra HD and Full HD panels. The company will produce 60,000 sheets per month based on input glass sheets in the initial stage of operation and achieve full capacity of 120,000 sheets per month by the end of 2016.
The Guangzhou panel plant also has achieved a landmark by being recognized by the Chinese government as the country’s first 'Green Plant' after it passed a stringent certification process as part of the "Green China Policy."
Until now, LG Display’s overseas production operations have focused on the manufacturing of modules in Nanjing, Guangzhou and Yentai in China as well Wroclaw, Poland and Reynosa, Mexico.
China led in global TV demand last year by revenue, with the country taking up 29.4 percent. North America was the runner-up with 20.1 percent, followed by Western Europe with 13.8 percent, according to an analysis by DisplaySearch, a market research firm.
Beijing guarantees tax and administrative benefits in return for inviting technology-driven Korean companies as the LG Group of affiliates, including LG Display, have been regarded as reliable foreign investors over the decade.
The two sides found common ground about tax benefits, among other things, to get LG to invest there. LG will hire more Chinese to operate the plant, which will be helpful in boosting the local economy.