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06.09.05, 16:40
Polska wygrala inwestycje LG Philips
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LG.Philips LCD to Build TFT-LCD Module Plant in Wroclaw, Poland
SEOUL, Korea & WARSAW, Poland--(BUSINESS WIRE)--Sept. 6, 2005--LG.Philips LCD
(NYSE: LPL, KRX: 034220), one of the world's leading innovators of thin-film
transistor liquid crystal display (TFT-LCD) technology, announced today that
it plans to build a "back-end" module production plant in Wroclaw, a city in
southern Poland, becoming the first global LCD industry player to commence
such production in Europe. An investment agreement for the plant will soon be
signed with the government of Poland.
LG.Philips LCD plans to establish a local entity in September 2005, and will
break ground for the plant in the first half of 2006 and start production in
the first half of 2007 with an initial capacity of 3 million modules per
year. The company will invest a total of EUR 429 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.
Mr. Duke Koo, executive vice president of worldwide sales at LG.Philips LCD,
said: "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 & Eastern Europe."
LG.Philips LCD has consistently pursued a strategy of optimizing its global
manufacturing processes, and its plan to build a TFT-LCD module factory in
Poland is in line with this goal.
Central & Eastern Europe provides a favorable environment for LG.Philips LCD
to build lasting strategic partnerships with its customers. Large consumer
electronics producers and customers of LG.Philips LCD such as LG Electronics
of Korea; Philips of the Netherlands; Panasonic of Japan; and Tatung and TTE
of China have established local production plants in the region as well.
According to DisplaySearch, a leading TFT-LCD industry research firm, Europe
has emerged as the world's largest market for LCD TVs today, with a 34.7%
market share in 2004 (based on units), ahead of Japan and North America.
DisplaySearch expects the European LCD TV market to record a compound annual
growth rate of 57% per year from 2004, realizing five-fold growth by 2008.
Further benefits include the high quality labor available in Poland as well
as the high level support of the Polish Government. Wroclaw, the nation's
educational and economic center, is well-known to offer a high quality labor
force and to have well established infrastructure, including efficient road
networks and excellent power supply.
LG.Philips LCD has similar TFT-LCD module factories in Gumi, Korea and
Nanjing, China and is currently constructing a module factory in the Paju
Display Cluster in Gyeonggi-do, Korea as part of the world's largest Gen 7
TFT-LCD panel manufacturing facility.
LG.Philips LCD will continue to concentrate its "front-end" production of TFT-
LCD panels in Korea, while continuing to build a global network of "back-end"
module assembly operations.
Going forward, LG.Philips LCD may consider prompting Korean suppliers who
provide core module parts, including back light units, to also set up
manufacturing facilities in the region in order to ensure the timely
procurement of parts and to secure higher cost competitiveness.
(Reference Information)
What is the module production process?
The module production process is the last step in the production of TFT-LCD
panels, where TFT-LCD panels are finished by attaching back light units,
light polarizing films, driver ICs, and product cases to the cells produced
at panel factories. After the module production process, TFT-LCD panels are
sold to TV or PC makers to be installed in LCD TVs, monitors, or notebook PCs.
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