LG Philips Opens New LCD Screen Plant

LG Philips LCD recently held the completion ceremony for its 7G LCD manufacturing plant, in which the company invested 5.3 trillion won with the ambition to become the global market leader in LCD production.

The plant is a core facility of the Paju Display Cluster (PDC), the biggest facility of its kind in the world covering 1.4 million pyeong. It can produce eight 42-inch panels or six 47-inch panels out of glass substrate.

Koo Bon-joon, vice chairman and CEO of LG Philips LCD, said, “We will develop PDC into the hub of the world display industry and a growth engine for Korea.”

The ceremony was attended by about 1,000 people including President Roh Moo-hyun, Gyeonggi Province Governor Sohn Hak-kyu, Minister of Commerce, Industry and Energy Chung Sye-kyun, LG Group Chairman Koo Bon-moo, GS Group Chairman Huh Chang-soo, and others.

LCD leadership-

The 7G LCD plant, of which construction was initiated in March 2004, started test operations in January 2006 and has produced test products, such as 42-inch and 47-inch TV panels, for four months.

LG Philips LCD plans to secure its leading position in the growing global digital TV market by increasing its production of panels to 45,000 panels a month by this June and 90,000 panels by the end of this year.

It also expects that the new plant will serve as a driving force to win against competition from Japanese and Taiwanese competitors, and to pave the way toward standardization of 40-inch range TV panels.

With the completion ceremony, dormitories which can accommodate 4,000 people, a sewage treatment plant, and power supply facilities, as well as the assembly plant itself, began operation.

From parts to TVs-

PDC accommodates not only LCD panel plants, but also parts and equipment contractors, including LG Electronics’ LCD TV plant and R&D complex. It is assessed that this is why the cluster enabled the co-existence of large and small companies and the creation of 42,000 jobs under one roof.

This gathering of LCD panel plants, part plants and R&D facilities leads to higher efficiency, enhancing price and technological competitiveness.

The government and Gyeonggi Province also spared no support.

Last November, the government presented a deregulation plan for the metropolitan area, partially allowing eight high-tech industries, including the LCD monitor industry, to construct and expand plants in the metropolitan area. Gyeonggi Province also helped by actively persuading residents to secure land for the cluster and to move burial sites in the area.

President Roh, in an unusual move, participated in the private plant’s completion ceremony. He said, “LG Philips LCD’s 7G LCD plant is a site of blessing which symbolizes Korea’s future. It was a difficult decision of the Cabinet to select this plant’s site. But now I feel that it was a good decision.”

President Roh also said to Gyeonggi Province Governor Sohn Hak-kyu, a member of the Grand National Party who successfully hosted the plant in Gyeonggi Province, “You must be delighted. I remember that you were very obsessed with this. Do you feel good now?”

Sang-Rok Lee Yeon-Wook Jung myzodan@donga.com jyw11@donga.com