LG invests in world's largest PDP production line

LGE is to invest US$ 275 million in the world's largest single line PDP facility, designed to produce 75,000 screens per month. LGE says the new factory is expected to meet ever-increasing demand for 40-inch and the mainstream 50-inch PDP screen markets.

"The investment decision was taken to resolve PDP shortages in the global market and enable LGE to offer flexibly in rapidly growing PDP markets," said Mr. M. B. Shin, President, LG Electronics, Middle East and Africa.

"More and more customers see slim, stylish, state-of-the-art plasma display screens as the future of home entertainment.

"The new PDP production facility in Gumi City, China, will be operational by September 2004. When on-line, the facility will increase LGE's global PDP production to around 135,000 screens per month."

Shin added that unlike LGE's two existing PDP facilities, the third production line will be equipped with technology that allows several sheets of PDP glass to be cut from one original glass; thus enabling the company to respond to the rapidly growing PDP market and ensure production efficiency and cost competitiveness.

"PDP technology is becoming a prime focus of customers in the Middle East, as with the rest of the world. With any new technology though, price is dictated by supply and demand," said Shin.

"However, over the next 12 to 18 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."

With the opening of LGE's third production line in 2004, the Korean giant expects to produce a total of around 1.6 million PDPs annually.

"Currently, LGE enjoys PDP market leadership in 17 nations in Europe, Middle East, Africa, and Central and South America," said Shin.

"When operational, the third PDP production line will enable LGE to service a total of 30 nations worldwide and gain 25 percent PDP market share by 2005 to capture the global top spot.

"Investing in the third PDP production line will provide LGE with the momentum to reshuffle the state-of-the-art display market."