LG Electronics holds groundbreaking for its 4th Plasma Display Panel line

Reflecting its confidence in the global PDP market, LGE is determined to concentrate its core capabilities on building A3, its 4th PDP line, which will be capable of producing 120,000 units monthly. The project requires an investment of US$568 million.

Attending the landmark groundbreaking ceremony were LG Chairman Bon-Moo Koo; LGE CEO S. S. Kim; LGE President Nam K. Woo; and other top LGE executives.

"With its investment in A3, LGE will be able to reinforce its PDP market presence and drive towards securing the world's number one position by 2005," said Mr K.H. Kim, President of LG Electronics Middle East and Africa.

LGE will invest US$568 million by the second quarter of 2005 in the first stage of A3, which will be built on a 125,620 square metre site. Responding rapidly to the fast-growing PDP market, the company then plans to pursue development of the second and third stages.

"A3 has the capacity to open two more additional lines in the future. When LGE will invest in these lines will depend on future PDP market conditions," said Mr Kim. "When the first stage of A3 is completed, with a monthly capacity of 120,000 units, LGE will become the world leader for PDP manufacture with a total monthly capacity of 285,000 units."

LGE hopes to establish A3 as the most competitive and sophisticated line of its type. Thanks to world-first technology, the line will be equipped with a mass-production system capable of producing six panels from a single sheet of glass, and the line will harness additional innovative technologies and processes.

In the meantime, LGE has begun to put A2, its third line, into full operation with a monthly production capacity of 75,000 units, based on technology that produces three panels from a single piece of glass. A2 was built in the second quarter of 2003 with an investment of US$281 million. LGE is set to boost A2's monthly capacity to 100,000 units by the year-end by producing four panels from a single piece of glass.

PDP demand is expected to surge to four million units this year and reach 13 million units by 2007. The industry saw a demand of 1.7 million units last year. On the back of its enhanced capacity and price competitiveness, LGE hopes to increase its global market share to 30 per cent by 2005, making it the world's largest player for PDPs.

"The investment in A3 will enable LGE to solidify its leadership in the global PDP market. We will continue to boost facility and R&D investments, aggressively drive marketing campaigns, and further upgrade our PDPs with the world's top technology," added Mr Kim.