Seoul, South Korea -
said it broke ground Tuesday on a Gen 8 thin-film-transistor LCD panel plant in Guangzhou, China.
The new plant is expected to begin mass production in the second half of 2014 to strengthen the company's business competitiveness in China -- the world's largest LCD TV market.
The Gen 8 LCD plant is located in Guangzhou's Advanced Technology Industry Development District, and is a joint venture among LG with a 70 percent investment, Guangzhous Development District with a 20 percent investment, and Skyworth Display with a 10 percent investment.
Skyworth Digital is one of the largest TV set makers in China and a strategic partner to LG Display.
LG said that local production of LCD panels will allow greater efficiency by bringing production closer to the market opportunity, "while also creating synergy with other LCD component makers."
Guangzhou is also near such major set makers as Skyworth, Konka, and TPV in Shenzhen, Dongguan, and Fuqing.
LG Display said it will be able to significantly reduce distribution, labor and tax costs for better cost competitiveness.
"The groundbreaking of LG Display's 8th-generation LCD plant further distinguishes our competitive advantage both locally and globally when it comes to supplying customers with the best products and support," stated Sang Beom Han, LG Display CEO. "With the local production of LCD panels, LG Display will continue to take the lead in China with a streamlined, highly efficient production process."
According to DisplaySearch, approximately 44.52 million LCD TVs were sold in China in 2011. China is now the world's largest LCD TV market, surpassing Western Europe and North America. It is expected to expand to 57.20 million by 2014.
In addition, the company's investment schedule in China will be finalized after considering the display market situation and overall company investment strategy.