LG Display to Inject Extra $1.1 Billion into Vietnam Plant

Tuan Minh

19:40 04/12/2017

BizLIVE - The expansion in Vietnam is aimed at responding to the increased TV panel production.

LG Display to Inject Extra $1.1 Billion into Vietnam Plant

LG Display has decided to scale up its investment in Vietnam. Photo: The Investor

South Korea’s LG Display Co Ltd has decided to invest another $1.1 billion to expand its operational organic light emitting diode (OLED) plant in northern Vietnam as it is still waiting for the delayed government approval for its first OLED plant in China, The Investor reported.
The funding plan for the Vietnamese unit, LG Display Vietnam Haiphong, comprises of $600 million in debt and $500 million in capital increase. The company has decided to carry out the plan in phases over the next four years.
LG Display in May last year kicked off construction of a $1.5-billion OLED screens plants in the northern city of Hai Phong, aiming to start production in the second half of 2017.
LG Display, which supplies smartphone screens to clients such as Apple Inc. and LG Electronics Inc, said comparatively lower salaries in Vietnam and the country’s proximity to China were the key reasons for deciding to build the plant in the country.
In the meantime it waits for approval for Chinese production, the display maker proceeds with the expansion in Vietnam to reduce risks.
Sources say the Vietnamese expansion is aimed at responding to the increased TV panel production.
In July this year, LG Display asked for the government’s permission to build its first overseas OLED plant worth 5 trillion won ($4.6 billion) in China. OLED is one of the nation’s designated key technologies that receive state subsidies so any plans for building a plant overseas should get government approval.
The Business Korea reported that a committee formed by the Ministry of Trade, Industry and Energy on October 30 in Seoul held a third round of meeting related to LG Display’s investment in the Guangzhou plant. The panel is concerned about possible tech leaks to Chinese rivals.
The government’s decision is expected to be announced this month, according to The Investor.

TUAN MINH

Từ khóa: LG Display, Hai Phong

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