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LG Display Sinking $2.6 Billion Into LCD Production
2:30 PM EDT Thu. Jul. 16, 2009
The Seoul, South Korea-based company said it expects growing demand for more LCD orders, based on findings from market research firm DisplaySearch. Analysts predict that the LCD market will grow at an annual rate of approximately 10 percent, from 140 million units in 2009 to 161 million in 2010, and reach 219 million in 2013.
The cash investment will be used to build P8E, an expansion of its eighth-generation line LCD production facility in Paju, South Korea. The factory will manufacture 55-, 47- and 32-inch TV panels beginning in the second half of 2010.
The news was announced before Thursday's release of LG's second quarter financial results for the period ended June 30. The company posted $238.5 million net profit in the second quarter for the period ended June 30.
"We achieved record high quarterly sales and swung back to profits thanks to the timely launch of new production lines and customized marketing activities," said Young Soo Kwon, CEO, in a statement, referring to losses in the past two quarters.
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