LG Display, the world’s second-largest flat panel maker, said Tuesday that it has signed a contract to build an eighth-generation liquid crystal display (LCD) plant in Guangzhou, China.

A total of US$4 billion will be invested in the envisioned factory, which would start mass production from 2012 and have an annual capacity of 120,000 LCD substrates, LG Display said in a statement.To build and oversee the new plant, LG Display and Guangzhou city have agreed to establish a joint venture, LG Display China, which will be capitalized at $1.33 billion.

LG Display said it will own a controlling 70 percent stake in the joint venture, while Guangzhou city and a Chinese LCD TV maker, which has yet to be chosen, will hold the remainder.

The deal is a follow-up on a memorandum of understanding signed between LG Display and Guangzhou city in August. It awaits approval from the South Korean government.

LG Display said the factory would be able to meet growing demand for LCD panels from Chinese TV makers.

According to market researcher DisplaySearch, China is expected to become the world’s biggest LCD TV market with 25 million units in 2009 and 41 million in 2012, surpassing North America and Western Europe.

YonhapNewsAgency

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