LG Display to Pour 3 Tln Won into Mass Producing OLED Panels from 2013

Strategic investment gives the company a jumpstart in the Korean OLED panel market.

LG Display has decided to invest 3 trillion won into the production of organic light emitting diode (OLED) panels for TV sets beginning in 2013 or later. The company said OLED panels for TV sets will be churned out using the existing eighth generation LCD line starting next half, and a massive investment will be made starting in 2013 to take the upper hand in the global OLED TV market. About 3 trillion won will be set aside for the mass production of OLED panels by the second half of 2014, the company said.
Starting next half, LG Display will begin to churn out OLED panels for TV sets so that LG Electronics can release a 55-inch OLED TV set ahead of others.
LG Display President Kwon Young-soo said, "Building an OLED mass production line with a monthly capability of 60,000 panels will require an investment of 3 trillion won."
3Q EARNINGS - LG Display, a leading innovator of TFT-LCD technology, reported unaudited earnings results based on consolidated International Financial Reporting Standards (IFRS) for the three-month period ending Sept. 30, 2011.
"LG Display has been building differentiated competencies to gain market share, cost competitiveness and product superiority. As a result, we were able to maintain our competitive position despite the challenges in the economy such as the global recession. It is regretful that there was an increased deficit in the income statement due to an exchange rate rise at the end of the quarter which translated to foreign exchange losses," noted LG Display President Kwon. "An improvement of our business structure through measures such as cost reduction, adjustment of inventory and utilization appears to be effective and based on the efficient operation strategies we have been implementing. We're committed to making a rapid recovery ahead of our peers when the market situation improves," he added.
The company shipped a total of 8.10 million square meters of net display area in the third quarter of 2011, an increase of 9 percent quarter-on-quarter.
TFT-LCD panels for TVs, monitors, notebook PCs, smartbooks and mobile applications accounted for 47 percent, 19 percent, 14 percent, 11 percent and 9 percent, respectively, in terms of revenue in the third quarter.
With 2.032 trillion won in cash and cash equivalents and a 143 percent liability-to-equity ratio as of Sept. 30, 2011, the financial structure of the company remains stable. "LG Display expects total display shipments to increase by a low single digit percentage in the fourth quarter compared to the third quarter. Also, a further decline in panel prices is expected to be limited," said James Jeong, CFO of LG Display. "Although uncertainty over market demand is expected to persist in the fourth quarter, LG Display will expand the portion of its premium products based on differentiated technology. Meanwhile, we will continue aggressive cost reduction efforts and work under tighter cash flow management to improve profitability while fostering future growth for long term shareholder value."
WORLD'S MOST ENERGY EFFICIENT LED TV PANEL - LG Display has developed a 55-inch panel for public displays equipped with the world's narrowest bezel.
The new public display panel comes with the narrowest bezel, creating a 5.3 mm gap (left/right: 3.4 mm, top/bottom: 1.9 mm) between individual panels when displayed alongside each other. This makes it possible to create a large 165-inch multi-screen public display capable of producing seamless, life-like images. In addition, the narrow bezel enables a more visible surface area, improving the viewing effect and visual cohesion most critical to a multi-screen display.
The product is accompanied by LG Display's Full HD panel with 800-nit brightness. In turn, the panel delivers vibrant colors and sharp contrast, while ensuring multi-screen displays that are brighter and clearer compared to previous setups. nw

LG Display President Kwon Young-soo.

The China FPR 3D Game Festival, hosted by LG Display in Beijing on Sept. 3-4, attracts a crowd of spectators.
Photos on courtesy of LG Display