LONDON Leading liquid crystal display maker LG.Philips LCD said Tuesday (Sept. 6) that it plans to spend 429 million euros (about $535 million) building a “back-end” LCD module production plant in Wroclaw, a city in southern Poland.
The modules produced there are expected to go into European LCD televisions and computer monitors as part of a strategy of centralized “front-end” display production and distributed module assembly at regional factories.
The company expects to sign an investment agreement for the plant with the Polish government in the near future. LG.Philips LCD plans to establish a local subsidiary company in September 2005 and break ground for the plant in the first half of 2006. Production of LCD modules is due to start in the first half of 2007 with manufacturing capacity at 3 million modules per year.
The company said it planned to invest a total of 429 million euro (about $535 million) in the plant by 2011, at which time it is scheduled to reach its design capacity of 11 million units per year.
LG.Philips LCD plans to allocate the capacity of the local plant to the production of large and wide LCD TV modules, such as 26-inches, 32-inches, 37-inches and 42-inches, as well as 19-inches and above for monitors.
“Our plan to build a TFT-LCD module plant in Poland is part of our strategy to lead the fast growing European LCD TV market as well as supporting our customers via the timely supply of products and swift technical support, both of which will be facilitated by establishing a production base nearer to our customers. This move is in line with the ongoing trend of major TV set manufacturers setting up production plants in Central and Eastern Europe,” said Duke Koo, executive vice president of worldwide sales at LG.Philips LCD, in a statement.