LCD makers to set up in China

A large number of Korean producers of materials, components and manufacturing equipment for liquid crystal display (LCD) panels are about to start manufacturing in China. BOE Hydis said yesterday it is negotiating with 10 LCD materials and parts producers and 40 equipment producers on conditions for building factories on land covering 1.3 million square meters (321 acres) near Beijing. The company is building a liquid crystal display industrial park there. BOE Hydis was formed following Beijing Orient Electronics Group Co.’s acquisition of Hyundai Display Technology Inc. “When the fifth-generation liquid crystal display production lines start operations in Beijing early next year, domestic companies’ exports of LCD materials and manufacturing equipment to China could reach 1 trillion won ($864 million) per year,” an official at BOE Hydis said. Producers of raw materials for liquid crystal display panels like LG Chemical Ltd., Nano Hitec Electronic Co., KoMiCo Ltd., and Kumho Electric Inc. have signed agreements to establish plants in China, as well as equipment producers such as Hyundai Elevator Co., Hyundai Heavy Industries and Jusung Engineering Co. BOE Hydis plan to select 30 more companies by the end of next month. “These companies can establish a foothold in China where demand for liquid crystal display is expected to grow rapidly,” the official said. by Lee Hyun-sang