[Introduction] LG Display said that the investment of 1.5 trillion won (about 1.3 billion US dollars) of the new production line will start production in the first half of next year, it will mainly produce large-size TV screen panels.
Beijing time on March 13th news, according to foreign media reports, flat-panel TV display manufacturer LG Display plans to invest 1.3 billion US dollars this year to increase production capacity to meet customer demand growth, LG Display expects LCD TV sales will grow steadily this year.
Benefiting from the Asian New Year holiday and some major sporting events such as the upcoming football World Cup, the demand for flat-panel TVs continues to rise. However, more and more people in the industry recently said that as major manufacturers actively increase production, the LCD TV industry may return to oversupply.
LG Display CEO Kwon Young-soo said after the company's annual shareholder meeting: "We are not worried about the oversupply situation in the second half of the year, the market will remain healthy, because although the output will increase, but panel manufacturers At present, we can only barely meet the demand for high-end products such as LED-backlit LCDs and large-screen TVs."
LG Display said that the investment of 1.5 trillion won (about 1.3 billion US dollars) of new production lines will start production in the first half of next year, it will mainly produce large-size TV screen panels.
In addition to the proposed production line, LG Display will have a new production line to be put into operation in the first half of this year. In addition, it plans to invest USD 4 billion to build a plant in China. The relevant plans are awaiting approval from relevant departments.
It is expected that by 2012, these three new production lines will increase the monthly production capacity of LG Display by about 30%.
Im Sung-bum, an analyst at Hanwha Securities, said: "The current demand is still relatively strong, but LG's aggressive investment plan is likely to prompt competitors to increase investment. As the market demand is uncertain, it is likely to appear next year. The situation of oversupply."
LG Display shares rose 2.3% on Friday's stock market trading, closing at 36,000 won per share, and the Korean stock market index rose 0.4% on the day. The stock has risen by about 40% this year.
According to market research firm iSuppli, global LCD TV flat panel sales will grow 40% this year, reaching $49 billion due to market demand shifting to large-size and advanced panels. According to another market research firm, DisplaySearch, LG controls about 25% of the global LCD TV panel market.
Kwon Young-soo said: "The current market demand is very strong, we can only meet 80% of customer demand, so we are seriously considering increasing production capacity.
Despite seasonal demand reductions, panel prices are unlikely to fall in the second quarter, and prices for certain products, including TV and IT, may rise as demand exceeds supply. â€
He expects the Chinese government to approve plans for two new foreign-invested companies to build advanced LCD production plants in China this month. LCD manufacturers generally believe that China will surpass Europe and the United States in 2011 to become the world's largest consumer of LCD TVs, so they are all planning to invest in China.
In terms of expanding the Chinese market and investing in factories, LG's main competitors include Samsung Electronics, the second largest LCD manufacturer in Taiwan, and Sharp Corporation in Japan.
It is reported that the shareholders of LG Display have approved the above investment and construction plan.
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