LG Electronics goes for plasma screen leadership with new production plant

LG Electronics is aiming to become the world's largest producer of Plasma Display Panels with the building of a new production facility

  • E-Mail
By  Mark Sutton Published  September 17, 2003

LG Electronics is ramping up its production of plasma display panels (PDP) with a new production facility in China. The $275 million plant will be the world's largest PDP production line, with capacity to create 75,000 screens per month.

The plasma screen market is growing steadily, but shortages in the supply of plasma panels has hampered growth. By building the new Gumi City plant, which will be operational by September 2004, LG will have a capacity of 135,000 PDPs per month.

MB Shin, president of LG Electronics Middle East and Africa commented: "The investment decision was taken to resolve PDP shortages in the global market and enable LGE to offer flexibly in rapidly growing PDP markets. More and more customers see slim, stylish, state-of-the-art plasma display screens as the future of home entertainment."

The plant is LG's third PDP facility, and will concentrate on production of 40" and 50" panels. The plant will use technology that is already deployed in LG's other plants, that enables several screens to be cut from a single glass, speeding up the process and enabling cost efficiencies. Once the new plant is operational LG will be able to produce 1.6 million PDPs per year.

By increasing production, LG aims to bring the price down for plasma screens and to corner the global market in plasma screens, with a target of 25% market share by 2005.

"Investing in the third PDP production line will provide LGE with the momentum to reshuffle the state-of-the-art display market," said Shin. "Over the next twelve to eighteen months, PDP prices will start to fall in line with production output, thus increasing demand. That demand will grow exponentially and LGE is positioning itself to satisfy future market needs."

"Currently, LGE enjoys PDP market leadership in seventeen nations in Europe, Middle East, Africa, and Central and South America. When operational, the third PDP production line will enable LGE to service a total of 30 nations worldwide and gain 25% PDP market share by 2005 to capture the global top spot," Shin added.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code