Korean LG Group subsidiary LG Chem said on
Friday that it plans to spend a total of 1.2 trillion Won (US$963.8 million;
US$1=1245.1 Won) on manufacturing LCD (Liquid Crystal Display) glass starting
in early 2012, Reuters reported. Previously LG Chem announced that, until March
2010, the company will invest 430 billion Won (US$345.4 million) in LCD glass
production, and the budget is included in the newly announced 1.2 trillion Won
investment. Intending to focus on LCD glass business as its new growth engine,
LG Chem inked a technology import contract in February 2009 with Schott of
Germany. By means of Schott's and its own technologies, LG Chem plans to build
the first production line in the second half of 2009, with two more lines to
follow in the future. With the 1.2 trillion Won investment, LG Chem expects to
reach an output of 17 million square meters of glass per year.
At the same time, another LG Group subsidiary LG
Display is considering building an LCD panel manufacturing plant in China,
according to a SinoCast Daily Business Beat report on July 21. It is reported
that LG Display is currently in talks with the Guangzhou municipal government
over the establishment of a new LCD plant. Thus far, LG Display has only
engaged in LCD assembly operations in China. Should the talks between the two
sides reach fruition, it is envisaged that LG Display will build the new plant
in Guangzhou Science City, an industrial park located in Guangzhou. However,
according to LG Display CFO (Chief Financial Officer) James Jeong, even if the
decision is made, the project will not materialize until two or three year
later.