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LG Display to invest over 1 tln won for flexible OLED

All Headlines 09:30 July 23, 2015

By Kim Seung-yeon

SEOUL, July 23 (Yonhap) -- LG Display Co., South Korea's flat panel maker, said Thursday it will spend 1.05 trillion won (US$907.2 million) over the next two years to build a new factory for flexible organic light-emitting diode (OLED), as part of an effort to ramp up its future display production.

The decision was made at a board meeting on Wednesday, with the construction of the new facility, in the southern provincial city of Gumi, to be completed by the second quarter of 2017, the company said in a regulatory filing.

The investment accounts for 8.9 percent of the firm's equity capital, it added.

LG Display has picked the flexible OLED as its next-generation display, which includes plastic OLEDs, since it has emerged as a lucrative profit source for its wide use in smaller smart devices such as smartwatches and vehicle dashboards.

LG Display chief Han Sang-beom pledged earlier that the company will bolster the small- and medium-sized OLED panels business as a future growth driver, in a bid to brace against a fall in demand for TV panels.

The flat panel maker runs two respective production lines in Gumi and Paju, north of Seoul. The Paju facility makes large-size OLED panels for TVs and those used in smartphones, while most of the smaller OLEDs for wearables and vehicle parts are produced in Gumi.

The company is scheduled to release its second-quarter earnings later in the day, with its operating profit forecast to have nearly tripled from a year earlier, according to analysts.

elly@yna.co.kr
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