LG pursuing 3D technology standard
LG Display starts operation of first Mexico plant
By Kim Yoo-chul
Three-dimensional (3D) technology is LG Electronics’ weapon of choice. Its aggressiveness to promote its in-house film-patterned retarder (FPR) 3D technology has secured another beachhead with a plant in Mexico.
It is confidant of making its FPR 3D technology the industry standard.
Inspired by a sharp rise in market share in countries from North and South America and the recent support from Japan’s Sony and Panasonic to use its technology, LG Display has opened its first plant in Mexico, mainly to produce modules for FPR 3D televisions.
``More customers are asking us to supply more FPR panels for use in 3D televisions. We just want to assert that LG is ideally-positioned for on-time delivery, committed to producing high quality products and offering better pricing by setting up a new factory in Mexico,’’ said LG Display spokeswoman Kang Moon-jeong.
The new module plant is the seventh after two plants in South Korea in Gumi and Paju, three in China in Guangzhou, Nanjing and Yentai and one in Wroclaw, Poland.
LG Display has rented space inside LG Electronics’ TV-producing plant in the Mexican city of Reynosa. ``For better cost saving, LG Display has applied a BMS style,’’ said Kang.
BMS is a simpler form of BLU, module and set. All the processes are completed in a single line. This is the latest manufacturing method and also known as the best way to save costs in producing.
``This year, we will produce 700,000 FPR 3D modules, which is 10 percent of LG Electronics’ annual production capacity in Reynosa,’’ said the spokeswoman adding LG Display is planning to invest more to expand the output. LG Electronics has a 38 percent stake in LG Display.
LG was late out the gate in 3D technology but it has been narrowing the once-wide market gap with Samsung Electronics as its FPR technology uses much lighter and cheaper glasses than Samsung’s battery-powered frames.
In terms of customer base, LG is improving as the two Japanese TV makers joined LG’s FPR 3D camp along with leading Chinese TV makers, Vizio of the United States and Philips of the Netherlands.
``We will do our best to further increase our share in 3D-embedded products. The FPR technology is already topping the countries in South America including Brazil. North America is our next target,’’ said Kang.
Market research firm DisplaySearch expects the demand for LCD TV in North America will reach 29 million sets.
But LG Display officials declined to comment on whether it plans to switch the module line for more profitable organic light-emitting diode or OLED screens.
After a dismal year in 2011, the demand for flat-screen TVs is expected to see a mild recovery throughout this year on eased worries about the debt-crisis in Europe and improving economies in China and the United States, market analysts say.