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LG Chem to spend 3 tln won on LCD glass plant

Post Time:Sep 25,2009Classify:Company NewsView:473

LG Chem Ltd., South Korea's largest chemicals maker, said Wednesday that it plans to invest 3 trillion won (US$2.5 billion) to expand its liquid crystal display (LCD) glass plant by 2018.

LG Chem will increase the production lines of LCD glasses to seven by 2018 to enhance its competitive edge in the market, the company said in a regulatory filing.

LG Chem plans to produce over 50 million square meters of LCD glasses annually, while it is aiming to post more than 2 trillion won in sales in 2018.

Earlier in the day, the company started work on its LCD glass plant in Paju, north of Seoul, which will be invested 430 billion won by 2012.

If the plant is completed, LG Chem will be the second largest maker of LCD glass in South Korea after Samsung Corning Precision Glass Co., a joint venture between Samsung Electronics Co. and Corning Inc. of the United States, the chemical company said.

Early this year, LG Chem clinched a deal with German technology firm Schott to use the German company's technology in producing the glass, a key component for LCD panels.

South Korea is home to Samsung Electronics and LG Display Co., the world's No. 1 and No. 2 makers of LCD panels, respectively.

In a separate filing, LG Innotek Co., an electronics parts unit of LG Group, said it will spend 1 trillion won to build a plant in Paju to produce light emitting diode (LED) chips for LCD backlights by 2012.

LG Innotek is targeting 1.5 trillion won in sales in the LED sector in 2012, the company said.

Source: tradingmarkets.comAuthor: shangyi

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