BOE Technologies to set up $4 billion mega LCD plant
28 August 2009
BOE Technology Group Co., China's largest liquid crystal display (LCD) panel maker, said it will lead a consortium investing about $4.1 billion to build an advanced LCD factory in Beijing.
The Shenzhen-listed firm is expected to become the world's third largest LCD panel provider once the new assembly line becomes fully operational.
The new investment by BOE, whose major shareholders are state-owned enterprises in Beijing, Hefei and Chengdu, is expected to give a shot in the arm to the local economy.
However, analysts are cautious about BOE's new investment as supply of LCD panels far outpaced current demand.
Also, with more overseas LCD panel makers, mainly the Taiwan firms, moving their factories to the Chinese mainland, the LCD market in China is expected to get more crowded.
Earlier this week South Korean LCD maker LG Display Co. said that it intends to build an LCD plant in the southern Chinese city of Guangzhou that could cost more than $3 billion.