LGE Aims to Be No. 1
Plasma TV Co. in Europe
- To doubles its production capacity of DTVs in Poland

LG Electronic is pushing to build a second digital TV plant in Mlawa, Poland, aiming at vigorously penetrating Europe's plasma and LCD TV markets.
The company has decided to invest, by 2010, a total of $110 million in the projected second DTV plant to respond to Europe's rapidly growing DTV demands, together with its first plant in Mlawa.
LG Electronics and the Polish government signed an investment agreement at the Press Center of the Polish investment agency (Palilz) on April 11. Among participants in the event were Yoon Sang-han, Executive Vice President and concurrently head of Digital Display unit, No Seog-ho, President of the Polish Subsidiary, Polish Economic Minister Jacek Piechota, investment agency head Andrzej Zdebski, and other personnel. Under the agreement, the company will invest in constructing another DTV plant and the Polish government will provide full support.
The rationale for LG Electronics' decision on this investment is this rapidly increasing demands for digital TVs across Europe including Poland, as well as the Polish government's support for its expanded operations, stable securing of manpower, and alignment of subsidiaries for creating synergic effects.
Under the agreement, LG Electronics will invest $110 million in digital TVs by 2010. The company will thus increase its annual production capacity for plasma and LCD TVs from current 1.5 million units to 3 million by 2006, 4 million by 2007, and 6 million by 2010, thereby seizing No. 1 spot in DTVs by 2007 in the European market which accounts for over 40% of the worldwide DTV market.
Yoon Sang-han, CEO and Executive Vice President of Digital Display Company at LG Electronics, said, "the current DTV market trends are characterized by expanded digital broadcasting environment, falling prices in display products, continued sales of DTVs in advanced markets such as North America and Europe, and increasing demands in BRICs countries."
He continued, "We have built up core capabilities from research planning to product sales, as well as from components to finished products, as we have established and are operating global digital TV production systems in Poland, Mexico, China, Europe as well as Korea. Based on this, we will strive to establish world's strongest production lines for achieving "Global Top 1" in DTV by 2007."
He added, "Based on our production infrastructure firmly established through our first plant, this additional investment in DTVs will push our current second-to-third place in Europe's LCD and plasma TV markets to No. 1 spot by 2007."
LG Electronics has secured a huge complex with an area of 390,084 m2 for the second DTV plant. It furthermore plans to create another complex with an area of 148,761m2 near the projected plant for partners to align the manufacturing of core components with the production of finished products, aiming to reinforce its cost competitiveness and stabilize the supply of components.
President No Seog-Ho, who heads the Polish production subsidiary of LG Electronics, said, "The second DTV plant, whose construction will commence in April, will receive investments in facilities and R&D by 2010 and employ about 3,000 people, and is expected to generate about 5,000 jobs given demands for manpower in nearby partnered firms."
Poland is geographically located halfway between West Europe and East Europe, thus positioning itself near the CIS region with big growth potential and offering a favorable business location. The nation has a population of 39 million people and has over 20% unemployment rate. Poland is also evaluated as a friendly place to do business as the Polish government vigorously endeavors to attract foreign investments and invest social overhead capital. nw

LGE, Matsushita Settle PDP Patent Disputes
LG Electronics, Inc. and Matsushita Electric Industrial Co., Ltd. have reached a basic agreement to resolve the legal procedures by a settlement with respect to patents relating to plasma display panel (PDP) brought in Japan and Korea.
Under the agreement, announced on Apr. 4 the companies dismissed the applications of the import suspension and other legal actions in Korea and Japan, as to their respective PDP patents.
As part of the settlement, the two companies have agreed to enter into a cross-licensing agreement regarding PC and DVD specifications as well as PDP patents.
LG Electronics and Matsushita welcomed an early settlement of the pending disputes. As a result of the settlement, the companies reconfirmed continued cooperation in other business areas.
In addition, LG Electronics and Matsushita agreed to set up a Business Collaboration Committee to further explore potential collaboration areas.
The companies have been maintaining a good relationship since January 2001 when they agreed to form a business collaboration team in the field of residential air conditioners. nw