Korean LG Display announced on April 7 that the company and Chinese TV maker Skyworth have established a joint venture in China, with each party holding a 50% stake, the Korea Times reported.

Through the venture, the two companies will set up an R&D center named Guangzhou New Vision Display Technology Research and Development Center in Guangzhou, Guangdong Province. The center, scheduled to begin construction in May 2008, is projected to be capitalized at 50 million RMB (US$7.1 million; US$1=7.0 RMB), equally shared by both parties, Nikkei Electronics Asia reported.

As per an agreement signed in January 2008, Skyworth has made an investment in LG Display's Guangzhou LCD module plant, while the latter guarantees stable supply for Skyworth. In addition, Skyworth also announced plans to set up a LCD TV plant on the premises near the aforementioned module plant and R&D center, according to Nikkei Electronics Asia.