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LG Display To Invest KRW1.1T In China LCD Plant Joint Venture

Post Time:Nov 04,2009Classify:Company NewsView:313

LG Display Co. (034220.SE), the world's second-largest producer of liquid crystal displays by sales, said Tuesday that it plans to invest KRW1.1 trillion ($934 million) for a 70% stake in a joint venture that will build a $4 billion liquid crystal display plant in China.

LG Display said Guangzhou's government will be its initial investment partner in the proposed plant, which will produce 8th-generation LCDs.

It has already signed a joint investment contract with Guangzhou's government, and is currently in talks with an LCD TV maker who could join the venture later, LG Display said in a statement.

However, the planned joint venture will only come through if the South Korean government approves the plan, the flat-panel maker said in a regulatory filing.

The China plant, to be named LG Display China, is expected to start mass production of LCD panels above-40 inches, using glass substrates measuring 2,200 millimeters by 2,500 millimeters, from the first half of 2012, LG Display said.

According to the U.S. market research firm DisplaySearch, China's LCD TV shipments will grow to 40.8 million units in 2012 from 25 million units in 2009.

The Ministry of Knowledge Economy had said Monday that South Korean display makers will invest at least KRW8.2 trillion ($6.9 billion) in capital expenditure in 2010 and up to a total KRW28.5 trillion by 2013.

Shares of the flat-panel maker extended gains following the news of its planned LCD plant in China, and were up 2.4% at KRW29,600 at 0520 GMT, outperforming the broader market, which dropped 0.3%.

Source: LGAuthor: shangyi

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