LG.Philips plans new $486 mn LCD plant

SEOUL: LG.Philips LCD Co. Ltd., the world's second-largest flat screen maker, said on Wednesday it would invest 504 billion won ($485.5 million) to build a new flat-screen plant near the capital.

The plan is to meet expected growth in demand for flat-screen televisions and monitors, the company said in a filing to the stock exchange, adding the investment would be financed with its internal funds.

An official at the South Korean-Dutch joint venture said that the investment plan was already covered by its previously announced capital expenditure plan valued at up to 4.5 trillion won for next year.

He added the investment was to be wholly spent on the main buildings, excluding the production lines to be installed inside. The remark suggests the company will set a separate investment plan on production equipment later.

He could not provide more details, including when the latest investment would be completed.

Flat-screen makers including Samsung Electronics Co. Ltd., the world's largest and also based in South Korea, are aggressively ramping up production, betting on strong demand for panel TVs to replace bulky tubes.

Active expansion plans by big makers have recently been a source of concern among investors about possible oversupply in the global market sparking a slump in prices.

Shares in LG.Philips, the joint venture between LG Electronics Inc. and Philips Electronics, ended up 1.34 percent at 45,350 won before the investment plan was announced.