LG Display to build module assembly facility in Vietnam
Apr 12, 2016
LG Display said Wednesday that it will build a new module assembly facility in Haiphong, Vietnam.
Tapping into Vietnam’s advantages of geographical location and human resources, LG Display said it expects the new module assembly facility will contribute to increasing production of organic light-emitting diode (OLED) display panels at its factories in Korea.
"Vietnam’s excellent investment environment will upgrade LG Display’s global manufacturing competitiveness," LG Display Chief Production Officer Jeong Cheol-dong said in a statement. "We will continue to lead the global display market by securing competitive new manufacturing bases."
LG Display said it has signed a memorandum of understanding with the city administration of Haiphong to invest in building the new module assembly facility there. The company will spend $100 million in establishing a local subsidiary within the first half of this year and start mass-producing modules by the latter half of 2017.
LG Display is operating module assembly lines in its factories in Paju, Gyeonggi Province, and Gumi, North Gyeongsang Province. Globally, it has module production lines in Chinese cities including Guangzhou, Nanjing and Yantai as well as Wroclaw in Poland.
"Adding to our existing module assembly facilities, we needed to expand our module production capability and Vietnam seemed like the ideal place," said the company.
It said it has decided to build its new assembly facility in Haiphong because the northern Vietnamese city is close to China, making product transportation to its Chinese customers easier. The characteristics of Haiphong’s demographics are also expected to provide a young labor force with relatively less expensive cost than in other parts of Vietnam, the company said.
Le Van Thanh, the secretary-general of Haiphong city administration, said, "We will provide our best administrative and policy support to help LG Display proceed with building and operating the facility."
Source: The Korea Times