InfoAnda - LG Display in non-binding deal for China LCD plant

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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: LG Display in non-binding deal for China LCD plant Reuters - Tuesday, August 25 * LG Display in non-binding deal for China LCD plant ADVERTISEMENT * CEO says China TV maker could be partner in possible JV * Samsung studying China LCD plant, no decision SEOUL, Aug 25 - 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 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 LCD leader, would supply LG Display with 17-inch computer monitor screens, while LG Electronics <066570.KS> would deliver 22-inch monitor panels to Samsung. It said the total value of the deal would be 105.6 billion won . 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 <.KS11> 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. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: China's Economy Stocks rally after jump in consumer confidenceAP - 1 hour 53 minutes ago Europe stocks rise further after U.S. consumer dataReuters - 1 hour 54 minutes ago Consumer sentiment improves; Home prices riseAP - 1 hour 55 minutes ago Consumer confidence rises above forecast in AugustReuters - 2 hours 2 minutes ago Related Articles: Business RBS talks on Asian assets in "full swing" -sourcesReuters - Wednesday, August 26 India cbank sells state loans for 49 bln rupeesReuters - Wednesday, August 26 BF Utilities board OKs spinning off investment unitsReuters - Wednesday, August 26 Malaysia Maybank posts Q4 loss, sees improved FY2010Reuters - Wednesday, August 26 FULL TEXT-Malaysia cbank rate decisionReuters - Wednesday, August 26 Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Global stock markets up, hit 10-month highs Jackson killed by drugs cocktail: court Homes of former Porsche executives searched: report NASA begins filling Discovery's external fuel tank France to claim exclusive Mediterranean fishing zone View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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