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)

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Poland's LOT Chooses Boeing Over Airbus

Poland's national carrier on Wednesday chose new jets from Boeing Co. instead of from Europe's Airbus consortium.

LOT ordered seven of Boeing's new 787 Dreamliner aircraft, a model slated to go into service in 2008, company spokesman Leszek Chorzewski said. He declined to provide the value of the contract.

A Boeing statement said "the value of the order according to catalogue prices" is $910 million. Airlines typically negotiate steep discounts.

"From among two very good aircraft, LOT has chosen the one that has better fitted the company's individual plan for long-distance routes in the next 15 to 20 years," Chorzewski said, referring to rival model Airbus A350.

LOT's search for new planes spurred leaders of France, Britain and Germany to send letters to Poland's Prime Minister Marek Belka in February in support of Airbus as it battles the U.S. aerospace company for market share.

The Polish carrier also has a purchase option for two more 787s and purchase rights for an additional five, it said. Options allow the airline to buy the planes at the same price as those it has already purchased and gives the new order the same production priority. Rights don't confer that status.

The new planes will replace six Boeing 767s LOT flies between Europe and America.

"Our company is modernizing and upgrading its fleet," Chorzewski said, adding that the Boeings on the U.S. routes could remain in service for several more years.

Poland's national carrier currently has an all-Boeing fleet of 19 large jets, plus 20 smaller Embraer jets and 13 propeller-driven Aerospatiale-Alenias.

Delivery is expected to begin in the second half of 2008, Chorzewski said. The planes will be fitted with European Rolls Royce Trent 1000 engines.

Shares of Boeing fell 53 cents to close at $64.50 Wednesday on the New York Stock Exchange. The Chicago-based company's machinist union went on strike Friday, and no commercial planes are being produced.

(Source: AP)

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LG.Philips to build 'back-end' LCD plant in Poland

Leading liquid crystal display maker LG.Philips LCD said Tuesday (September 6) that it plans to spend 429 million euros (about $535 million) building a “back-end” LCD module production plant in Wroclaw, a city in southern Poland.

The modules produced there are expected to go into European LCD televisions and computer monitors as part of a strategy of centralized “front-end” display production and distributed module assembly at regional factories.

The company expects to sign an investment agreement for the plant with the Polish government in the near future. LG.Philips LCD plans to establish a local subsidiary company in September 2005 and break ground for the plant in the first half of 2006. Production of LCD modules is due to start in the first half of 2007 with manufacturing capacity at 3 million modules per year.

The company said it planned to invest a total of 429 million euro (about $535 million) in the plant by 2011, at which time it is scheduled to reach its design capacity of 11 million units per year. LG.Philips LCD plans to allocate the capacity of the local plant to the production of large and wide LCD TV modules, such as 26-inches, 32-inches, 37-inches and 42-inches, as well as 19-inches and above for monitors.

“Our plan to build a TFT-LCD module plant in Poland is part of our strategy to lead the fast growing European LCD TV market as well as supporting our customers via the timely supply of products and swift technical support, both of which will be facilitated by establishing a production base nearer to our customers. This move is in line with the ongoing trend of major TV set manufacturers setting up production plants in Central and Eastern Europe,” said Duke Koo, executive vice president of worldwide sales at LG.Philips LCD, in a statement.

(Source: EETimes)

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Volvo Receives Order for Biogas Buses

Truck and bus maker AB Volvo has received an order for 32 biogas buses from Bernmobil, the public transport company in the Swiss capital, Bern.

The buses will be shipped next year, and Bernmobil has an option for 39 more, Volvo said.

The Swiss company has decided to gradually replace its diesel-operated buses with gas buses for environmental reasons, Volvo said. The buses will be built in Volvo Buses' factory in Wroclaw, Poland.

The value of the deal was not disclosed.

(Source: Associated Press)

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LG Eyes No. 1 in Europe’s DTV Market

LG Electronics aims to dominate the European digital TV market by 2007 by boosting output at its two Polish plants from 1.5 million units this year to 4 million units.

The electronics giant said Monday that it plans to become the No. 1 digital TV supplier in Europe by gradually expanding the annual production capacity of its two plants in Poland from 1.5 million units this year to three million in 2006, four million in 2007 and six million in 2010.

``We seek to dominate the European digital TV market through low prices based on local production in Europe, streamlining our distribution network in the region and beefing up our flat-panel display TV product lineup,’’ said Kim Jong-eun, president and chief executive of LG Electronics’ European operations.

LG Electronics’ digital TV production will be enhanced by its second Polish digital TV plant that will start mass production next month. The electronics maker expects demand for the flat-screen digital TV to rise steadily in the future as the majority of European countries have just begun adopting high-definition (HD) digital broadcasting services.

``With the completion of our second plant in Poland, in addition to production facilities in Mlawa Poland, Reynosa Mexico, Shenyang and Nanyang China, and Kumi Korea, LG has completed the establishment of production bases on the major continents,’’ Kim added. He said LG would continue striving to localize the entire production system from research and development to retail.

LG Electronics’ Polish digital TV production subsidiary plans for $1 billion in sales this year and seeks to triple its annual revenue to $3 billion by 2010.

The electronics maker, which ranked second only to Royal Philips Electronics of the Netherlands in the European plasma display panel (PDP) TV market in the first half, is confident about becoming the No. 1 PDP TV vendor in Europe in the second half.

In the January-June period, Philips led the European PDP TV market with 15.5 percent market share, followed by LG Electronics with 14.2 percent, Panasonic with 13.7 percent, Samsung Electronics with 9.6 percent and Sony with 9.1 percent, according to GfK data provided by LG.

LG Electronics seeks to control the biggest share of the liquid crystal display (LCD) TV market in Europe by 2007, the Gfk data said.

(Source: The Korea Times)

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The military cooperation agreement signed between the Polish and Azerbaijani governments has been ratified by the Milli Majlis (Parliament), reported AzerTAj’s correspondent.

Vice-speaker of the Azerbaijani Parliament, head of the Milli Majlis Standing Commission for defense and security Ziyafat Abbasov said the agreement signing in March 2005 in Warsaw based on the Joint Communiqué between the countries which was signed in 1997. According to the agreement, the both sides on the equal partnership principles and in accordance with legislations these countries and international legal norms will collaborate in the defense field.

Moreover, the agreement envisages to hold exchange of experiences and to provide democratic control over the defense structures, also to render support for peace, security and anti-terror actions. The both sides have agreed to cooperate within the NATO’s individual partnership Plan of Action as well.

(Source: AzerTag.com)

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