LG Display to set up US$4-bln JV in Guangzhou

Oct. 16, 2009 (China Knowledge) - South Korean electronics giant LG Display Co earlier this week said it had obtained approval from its board of directors to set up a joint venture in Guangzhou, China, sources reported.

The JV, which is designed to involve US$4 billion of investment, will be mainly engaged in the production of liquid crystal displays.

LG Display Spokeswoman Claire Ohm could not be reached for comment on the JV proposal.

Media sources indicate that the proposal is subject to approval from South Korean authorities.

Meanwhile, Kwon Young-soo, CEO of LG Display, has estimated that global LCD TV panel sales will increase to 170 to 175 million units this year, whereas the original estimate was 120 million units.

Kwon added that the firm will work on planning an 11th-generation LCD plant after establishing an 8.5-generation LCD plant in mainland China.

LG Display yesterday posted a net profit of KRW 559 billion for the third quarter of this year. The firm's Q3 net profit was nearly double that of the corresponding period of last year. Its operating margin increased to KRW 904 billion and its sales revenue increased to KRW 5.97 trillion in Q3 this year, according to sources.