12/19/2006

TPV buys LCD TV plant in Poland

Hong Kong-listed TPV Technology, the world's largest LCD monitor manufacturer, has bought a local TV assembly plant in Poland, according to today's Chinese-language Commercial Times. The site will be the LCD TV base for TPV in Europe, said the paper.

Volume production at the plant is set to commence in the beginning of next year, the paper noted, adding that the Hong Kong-listed company has begun pilot runs at the plant this month.

Europe is the third largest region for TPV in terms of sales breakdown during the third quarter of 2006, according to a filing TPV posted with the Hong Kong Exchange (HKE). Europe accounted for 25.1% of TPV's third-quarter-revenues this year, noted the filing.

TPV shipped 11.1 million PC monitors and 700,000 flat panel TVs in the third quarter of 2006. The company reported quarterly sales of US$1.95 billion, up 13.6% on quarter and 49.2% on year, stated the filing.

Although shipments of LCD TVs soared in the third quarter, the overall gross margin of TPV dropped to 5% during the period, compared to 5.4% in the first half of 2006 due to a falling ASP (average selling price) and the slow growth of LCD monitors, the company said in the filing.

To avoid additional tariff fees in Europe, Toshiba earlier announced it would build a new LCD TV base in Poland. In September, LG Electronics (LGE) said the company's third line of LCD TV production in Wroclaw kicked off.

Quanta Computer recently also said Poland would be an ideal spot as an LCD TV production base for the company, according to company president Michael Wang.

Sharp announced in April of this year that it would set up a new LCD module (LCM) plant in Poland.

TPV display shipments in 3Q 2006 (million units)

Application

Shipments

Q/Q change

Y/Y Change

LCD monitor

8.6

32.7%

94.5%

CRT monitor

2.5

-

-

LCD TV (units)

Nearly 700,000

32.8%

Nearly 100%

Source: Company filing with the HKE, compiled by DigiTimes, December 2006

LCD TV and LCM plants in Poland

Company

Application

Location

Total investment

Production

date

Note

Toshiba

LCD TV

Kobierzyce, near Wroclaw

6 billion yen (US$51 million)

August 2007

-

LGE

LCD TV

Wroclaw

-

September

2006

The third production line of LGE in Poland

Sharp

LCM

Torun

Initially, €44 million (approximately US$53.2 million)

January 2007

-

LG.Philips LCD

LCM

Wroclaw

-

In the first half of 2007

-

Source: Companies, compiled by DigiTimes, December 2006

Source:By Emily Chuang, DigiTimes.com, Taipei, www.digitimes.com



Flights to Poland

Novea - Business in Poland