LG Display to invest W450 bil. in Gumi OLED plants

LG Display Vice Chairman and CEO Han Sang-beom, center, with North Gyeongsang Province Governor Kim Kwan-yong, left, and Gumi Mayor Nam Yoo-chin after signing a memorandum of understanding for investment in the organic light-emitting diode display panel plant in Gumi, at the provincial government office in Andong, North Gyeongsang Province, Friday. / Courtesy of LG Display

By Yoon Sung-won

LG Display will invest 450 billion won in its organic light-emitting diode (OLED) display panel plants in Gumi, North Gyeongsang Province.

Based on the investment, which will mainly aim at flexible OLED panels and lighting OLED units, the world’s largest display maker said Friday it will extend its technological know-how in smartphone and wearable device displays to foldable and automotive products.

“In the global display industry, the shift toward OLED is a new challenge and an opportunity for all businesses,” LG Display Vice Chairman and Chief Executive Han Sang-beom said. “LG Display will retain leadership in the growing OLED market through timely investments and maximized investment efficiency.”

LG Display said it has signed a memorandum of understanding with the regional governments of North Gyeongsang Province and Gumi for the investment and administrative support. North Gyeongsang Province Governor Kim Kwan-yong, Gumi Mayor Nam Yoo-chin and lawmakers-elect Baek Seung-joo and Jang Seok-choon of the Saenuri Party participated in the signing ceremony with the LG Display CEO.

The company said the 450 billion won includes a 310 billion won upfront investment for the sixth-generation flexible OLED manufacturing line and 140 billion won for the line producing the world’s first fifth-generation lighting OLED units.

The fifth-generation lighting OLED line will be able to produce 15,000 panels a month, the largest production scale in the world. The line will start mass production by the first half of 2017, the company said.

In July 2015, the company decided on a 1.05 trillion won investment for its E5 sixth-generation flexible OLED production facilities. The 310 billion won investment now scheduled will enable the line to make 7,500 flexible OLED panels a month, it said.

LG Display also expects the investment will give it a foothold in foldable and large-size automotive display products that have been considered a major new growth area in the display industry.