LG ramps up plasma panel production

LG Electronics Inc., Korea’s top appliance maker, plans to spend almost 400 billion won ($383 million) to add two more plasma display panel production lines by 2007. “We will build a second production line in the latter half of next year and the third-phase investment is planned for the following year,” said Yoon Kwang-ho, executive vice president of the plasma display panel division at LG Electronics in a press briefing in Gumi, North Gyeongsang province, yesterday. “We will invest 200 billion won next year, after which the production capacity will reach 550,000 units,” Yoon said. “By 2007, our monthly production capacity will reach 730,000, making us the number one player in the market.” “Investment in the second and third lines will not require additional space and it takes only half a year for them to begin full operation.” LG Electronics’ fourth plasma display panel plant, in which the company invested 660 billion won, opened on Sept. 1 and churns out 120,000 42-inch panels a month. LG’s newer “A3” plants have adopted a method of producing six panels from a single pane of glass. “A3’s production robots and belts were initially designed to manufacture eight panels from one pane of glass,” said Ryu Jae-hwa, head of the plant’s research center. “Once eight-panel substrates become available next year from suppliers such as Japan’s Asahi, the production capacity will immediately climb to 180,000 units per month.” In a related move, the company plans to add more television plants in Poland and other regions in northern Europe, where demand for plasma display panels is picking up. Top global makers of plasma display panels, such as Samsung SDI and Japan’s Mastushita, are rushing to expand production on expectations of an explosion in demand for big televisions ahead of the World Cup in Germany next year. Samsung SDI is reportedly pondering construction of a fourth plasma display line at its plant in Cheonan, South Chungcheong province, which currently rolls out 250,000 units per month. Mastushita plans to ramp up its monthly production capacity to 300,000 units per month by opening a third line in Hyogo Prefecture this year. According to experts, the global plasma display panel market is forecast to almost triple by 2010. by Seo Ji-eun, Kim Chang-woo