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Posted : 2007-09-10 17:10
Updated : 2007-09-10 17:10

Samsung, LG Curtail Cathode-Ray TV Biz

By Kim Yoo-chul
Staff Reporter

Under the onslaught of liquid crystal display (LCD) and plasma display panel (PDP) TVs, cathode-ray TVs (CRT) are disappearing.

In line with recent restructuring moves, Samsung SDI is seriously considering shutting own its production lines for CRTs during the second half of the year.

``We will accelerate efforts to close down lines for producing CRTs in our factories from China to South America due to dropping global demand,’’ said an official from Samsung SDI.

``We are in the midst of a group-scale restructuring of electronics manufacturing facilities and research-related posts around the globe,’’ added the official.

Asked about the time and place of restructuring the lines, the official said the company is engaging in internal discussions about the issue.

``As depreciation at those facilities ended a long time ago, we still plan to produce CRTs centering slim models as long as demand remains,’’ said another official from the company.

Samsung runs about 17 lines for producing CRTs from its plants in China, Brazil, Mexico, Hungary and Malaysia, according to the company.

Samsung Corning, which suffered losses of more than 53 billion won last year, has decided to close its plant in Germany. The firm is in talks with local joint labor-management committee to shut down the plant.

Samsung’s rival LG Electronics also is avoiding investments in the business as the firm believes the business is no longer appealing to global consumers.

Its vice president Kang Shin-ik recently told reporters that the company will produce CRTs as long as there is demand, but there will not be any additional investment.

Rather, the two South Korean electronics giants will focus on creating new research centers for promising sectors and new manufacturing posts in the regions where demand is expected to soar.

The global demand for CRTs is falling rapidly. According to data from DisplaySearch, global demand for the TVs is forecast to drop to 600 million by 2011.

yckim@koreatimes.co.kr

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