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September 24, 2009
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According to the group, LG Chem, Korea’s largest chemical company, will invest 3 trillion won by 2018 in the plants, while LG Innotek, the group’s electronics parts unit, will spend 1 trillion won by 2012. “The LCD glass business is considered one of our new growth engines, and we plan to be a global producer [of LCD glass] in a short period of time,” LG Chem said in its official statement. LCD glass is an integral component of display panels and accounts for about 20 percent of their total cost. Globally, only four companies have the technology to make LCD glass, according to LG Chem. This year, the firm struck a deal with Germany’s Schott to secure the rights to use the company’s technology to produce the material. As part of this effort to focus on LCD production, LG Chem will build seven LCD glass production lines by 2018, the group said. It expects to see around 2 trillion won in yearly sales by that year, with production of over 50 million square meters (59.8 million square feet) of LCD glass per year. The first production line is slated for completion by 2012. When all seven are up and running, LG Chem will be the No. 2 LCD glass company in Korea, behind Samsung Corning Precision Glass Co. The display industry has been suffering a slowdown recently, with demand falling for TVs and computers. However, many governments around the world have been supporting the industry with stimulus packages. Meanwhile, LG Innotek said it expects 1.5 trillion won in LED (light-emitting diode) sales by 2012, thanks in part to a 1 trillion won investment to build a plant in Paju to make LED chips and LCD backlights. The electronics parts maker said it would start production of LED packages at the plant by 2010 and hopes to achieve a global LED market share of around 10 percent by 2012. The worldwide LED chip market is dominated by five companies, including Japan’s Nichia and the U.S.-based Cree. The Paju LCD cluster is quickly becoming one of LG’s biggest investment areas. The LG Group previously invested 9 trillion won to build seventh-generation and eighth-generation LCD production lines in Paju. The group added that by 2018, the Paju complex will employ around 4,500 workers. By Cho Jae-eun [jainnie@joongang.co.kr] |
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