BusinessKorea, Investor reported on the 30th, Sources said that LGD's plasma panel module production line in Nanjing, China, was converted into a liquid crystal panel module production line. The project has been completed and will be tested first. Mass production will start in the second quarter. LGD There are already three liquid crystal module factories in China, namely N1, N2, and N3. The annual production capacity reaches 50 million sets. With the newly established N4 plant, the production capacity will increase by 20 million to 70 million sets.
Industry observers said that although LGD's long-term development focus is on OLED panels, LCD panels are still the company’s main source of revenue, with 90% of its revenue coming from LCD panels. The outside world believes that the addition of LGD's new plant is to further expand the Chinese market, despite the LCD Panels are gradually oversupply in China, but demand for higher-order LCDs continues to increase. In 2016, LGD’s total revenue was 70% from China. In 2017, the company also expanded its production capacity in Guangzhou.
The cost of building a new LCD plant was as high as 1 trillion KRW. LGD was converted to the N4 Guangzhou plant. The in-plant production equipment was also shipped from the South Korean factory to save money.