LG-Philips Settles on Poland for LCD Module Plant

The LG Group has settled on a location for a liquid crystal display module factory in Poland, from where it hopes to make inroads into the European market.

LG-Philips LCD said Wednesday that it would invest 429 million euros until 2011 in building an LCD module factory in the Polish city of Wroclaw. The factory will have an annual production capacity of 11 million units. At module plants, backlight units are attached to motherglass panels, and the product is then sold to monitor and TV manufacturers.

LG plans to start construction in the first half of next year. The company’s Goomi and Paju factories will supply the motherglass to the Polish plant.

LG-Philips LCD settled on Wroclaw because LG Electronics, a major customer for LCD panels, is building a digital TV factory in Mlawa, 400 kilometers away. The new TV factory will go into operation next month.

Several multi-national display manufacturers like Royal Philips Electronics, Panasonic and Tatung are building factories in Eastern Europe.

LG-Philips LCD vice president Koo Deok-mo says major TV companies are vying to move production to Eastern Europe, adding LG will have an edge over its rivals by localizing production and supply of LCD modules.

(Source: chosun.com)