LG Display allowed to build new factory for OLED panels in China China

LG Display has received permission from the Chinese government to build a new factory in Guangzhou, China, for the production of OLED panels. LG Display already has an LCD factory here; the new factory will be built next to the existing one.

The new factory is part of a joint venture that LG Display has co-founded with an unknown company. For the investment, the joint venture will receive a capital injection of about 2 billion euros, Reuters reports. LG Display will get 70 percent of the shares.

In December last year, the South Korean Ministry of Commerce approved the plan. The intention is that the factory will mainly produce relatively large OLED panels from the second half of next year. With the expansion of this production capacity, LG Display wants to respond to the rapidly growing demand for OLED TVs in China.

The total production capacity of large OLED panels for TVs will increase to 130,000 panels per month once the new production line is commissioned. The existing OLED panel factories in South Korea already produce 70,000 panels each month, with an additional 60,000 panels once the new factory is up and running. Ultimately, this number should be increased from 60,000 to 90,000, reports The Korea Herald.