LG Philips LCD begins 2nd phase of new plant

LG Philips LCD Co., the world’s largest maker of liquid crystal display panels for computer monitors and televisions, announced yesterday it has begun ordering equipment for the second phase of construction of its new factory, which it aims to complete by the third quarter of next year. The new factory, a seventh-generation production line in Paju, Gyeonggi province, will produce 42-inch and 47-inch LCD panels. The first phase of the development is in its final stages, and, according to the company, will be able to produce 45,000 panels per month from the first quarter of next year. Once the second phase is finished by the end of next year, LG Philips, which has invested 5.3 trillion won ($5.1 billion) in the new site, said its monthly manufacturing capacity will double. “We took into account the current market situation, and how the demand for LCDs may change in the future,” said a spokesman for the company. “We feel that the 2006 World Cup in Germany will increase demand for flat-panel TVs, and so we will be aggressively expanding our capacity in the next couple of years.” According to Display Search, a U.S.-based market research firm, the LCD television market will more than double this year from last to 18.8 million units, and reach 46.6 million units by 2007. Although the new plant was planned for some time, LG Philips was only able to start construction following the recent easing of restrictions on factories in the Seoul metropolitan area. The regulations had previously prevented the construction or expansion of production sites by Korean and foreign technology companies in Seoul, Incheon and Gyeonggi province, in order to prevent excessive industrial development near the capital and to achieve more balanced regional development. Industry analysts expect the loosening of the restrictions to be a major boon to LG Philips LCD, further boosting the company’s global competitiveness. by Kim Chang-woo