By Kim Yoo-chul
LG Display said Thursday that work at one of its OLED-producing lines at its mega display complex in Paju, Gyeonggi Province, has been halted so the Ministry of Employment and Labor can conduct a safety check.
"LG Display has halted operations of the E3 line to allow a safety check following a nitrogen gas leak Monday," the company said.
The labor ministry said in a statement that the production halt be in effect while it investigates the gas leak.
LG Display declined to talk about any effect on sales or production and said it will work to resume operations as early as possible.
The E3 OLED line can produce up to 8,000 OLED sheets to be used in televisions, monthly.
LG Display, the display affiliate of LG Electronics, said the impact of the temporary suspension will be limited as the company also runs another OLED line ― E4.
"As the OLED TV business is improving, it's tough to analyze the estimated monetary impact on the suspension, but the effects will be limited," Korea Investment analyst Yoo Jong-woo said in a report.
Analysts say if LG normalizes the E3 line, three or four weeks will be needed to fully recover losses.
The halt is expected to weigh upon LG Electronics' OLED TV business, which the company identified as a next-generation revenue stream, possibly delaying the launch of "certain OLED TVs" depending on how long the investigation takes.
Unlike Samsung Electronics, LG Electronics is heavily pushing OLED TVs as they have enhanced viewing quality.
Samsung said it has no plan to promote OLED TVs as it will invest more in TVs using cadmium-free quantum dot technology. This has advantages in realizing clear images which compare well with OLEDs but at reduced costs.
The basic cost for OLED panels has also fallen as the two LG affiliates teamed up to promote large-sized ones, said officials.
LG Display is currently supplying its OLED panels to leading Chinese TV manufacturers including SkyWorth and Konka, and the Korean supplier promised to supply more as a strategy to strengthen the "OLED TV Camp."
Separately, LG Display recently began shipping OLED displays to Japan’s Panasonic.