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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters LG Display in deal for China LCD plant Sun Aug 30, 2009 11:55pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] SEOUL (Reuters) - LG Display (034220.KS) on Tuesday said it had signed a non-binding agreement to build an LCD panel plant with the Chinese city of Guangzhou, and would like to see a Chinese television maker come on board for the project. Although LG Display did not disclose details, a local newspaper reported that the company was poised to invest 5 trillion won ($4.03 billion) in the facility. The plant would be an eighth-generation facility, LG Display said, capable of making large-size panels for television sets. "It would be good if a Chinese TV maker could become a shareholder" in a potential joint venture, LG Display CEO Kwon Young-soo told a press event, citing companies such as Hisense (600060.SS), Haier (1169.HK) and Skyworth (0751.HK). Asked if Samsung Electronics' (005930.KS) had plans to build an LCD plant in China, Samsung LCD unit president Chang Won-kie also expressed interest in the possibility of having a seventh or eighth generation facility there, but added that nothing had been decided. DEAL BETWEEN RIVALS Separately, South Korea's Ministry of Knowledge Economy said in a statement that Samsung Electronics, the world's top LCD leader, would receive 17-inch computer monitor screens from LG Display, while Samsung would supply LG Electronics (066570.KS) with 22-inch monitor panels. It said the total value of the deal would be 105.6 billion won ($83.5 million). The Ministry said it expected the scope of the deal to be expanded to include other types of LCD screens, although an immediate deal involving television panels would be difficult as the two sides used different technologies. The ministry said the computer monitor cross-sourcing agreement would save about $83 million in import costs as these products are usually bought from Taiwan. The deal is also aimed at opening the way for more cross-purchasing agreements between the rival groups. Shares in Samsung Electronics fell 1 percent to close at 775,000 won, while LG Electronics was down 3.1 percent. LG Display, a part of the LG Group, rose 2.6 percent, while the wider market posted a 0.67 percent drop. The outlook for South Korean and Taiwanese LCD makers has brightened recently as fears of second-half oversupply have faded because of a shortage in glass substrates, and on growing demand from China boosted by a government stimulus package. ($1=1245.6 Won) (Reporting by Marie-France Han; Editing by Jonathan Hopfner) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: LG to unveil 15-inch OLED TV Mortal Kombat in the game console market Microsoft is slashing the price of its high-end Xbox 360 video game console by 25 percent, stepping up its console war against Sony's Playstation 3 and the Nintendo Wii. 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