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LG.Philips LCD broke ground on June 14, 2006, for an LCD module plant in Kobierzyce, near Wroclaw in southwestern Poland. The company announced a €429 million investment and planned to start production in 2007, with capacity intended to grow from 3 million modules a year to 11 million by 2011.
Where and when did LG.Philips break ground?
The groundbreaking took place on June 14, 2006, in Kobierzyce, near Wroclaw. LG.Philips LCD described the project as its first European base for back-end TFT-LCD module production. The project followed an investment agreement signed on September 9, 2005, with the Polish government and Wroclaw municipality.
At the groundbreaking, company vice chairman and CEO Bon Joon Koo called the facility an important step in establishing LG.Philips LCD’s manufacturing expertise in the geographic center of Europe.
How much did LG invest, and what capacity was planned?
LG.Philips LCD announced an investment of €429 million in 2005. The capacity figures were plans, not a report of actual yearly output: the initial line was designed for 3 million modules annually, with a target of 11 million units per year by 2011.
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| Milestone | Announced figure or timing |
|---|---|
| Investment | €429 million, announced by LG.Philips LCD in 2005 |
| Initial planned capacity | 3 million modules per year, announced by LG.Philips LCD in 2005 |
| Planned capacity by 2011 | 11 million units per year, a design-capacity target announced by LG.Philips LCD in 2005 |
| Production start | Company guidance in 2005 called for the first half of 2007; the June 2006 groundbreaking announcement specified March 2007 |
Why did LG.Philips build the plant in Poland?
The manufacturing plan divided work between Korea and Europe. LG.Philips LCD said technology-intensive front-end TFT-LCD panel production would remain in Korea, while back-end module production and assembly would be closer to European customers.
The company said this arrangement was intended to lower distribution costs, improve the timeliness of supply and provide faster technical support as the European LCD television market grew. Duke Koo, executive vice president of worldwide sales, described the Polish plant as part of the company’s strategy for serving that market and supporting customers.
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What did the plant make, and when did production begin?
LG.Philips LCD reported that full-scale mass production began on March 30, 2007. The plant made LCD modules mainly for televisions with screens 32 inches and larger. The company said it planned to expand annual capacity from 3 million to 11 million units.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What role did Toshiba have in the project?
LG.Philips LCD’s 2006 annual-report filing records a Toshiba alliance. Toshiba took a reported 19.9% equity participation in the Polish subsidiary, and LG.Philips LCD Poland was to supply Toshiba with LCD-TV panels made at the plant.
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