LG's 8.5 generation line starts to postpone domestic manufacturers ' respite

Beijing Orient and huaxing photovoltaic two major 8.5-generation LCD line has been put into production, however, LG investment in Guangzhou, 8.5-generation LCD panel production line started to push again.　　The daily economic news reporter yesterday (August 25) from the project's share party Skyworth confirmed that the project started time has been postponed, when the start and no timetable. Industry insiders believe the move also reflects LG's concern over the current oversupply of LCD panels.　　This may let the face of the loss of the pressure of domestic many panel companies in a short period of time to breathe a sigh of relief. LG in China 8.5 generation line push again recently, there are foreign media reports, South Korean electronics giant LG's LG (hereinafter referred to as LGD) in the 6th notice that the cancellation of Guangzhou 8.5 generation Panel Factory commencement ceremony, it is not clear whether the year will start.　　Skyworth Group spokesman Li Cong yesterday confirmed the news to the daily economic news.　　Data show that August 21, 2009, Guangzhou Development Zone and LGD in Guangzhou signed a joint venture to establish 8.5-generation LCD Project cooperation memo, the total investment of 4 billion U.S. dollars, the amount of postpartum production capacity of 60,000 pieces/month, the future will expand to 120,000 pieces/month. March 19, 2010, the relevant company was established.　　Skyworth Group of wholly-owned subsidiary of Shenzhen Skyworth-RGB Electronics Co., Ltd. and LGD, Canton Kay Technology Development Co., Ltd. signed a joint venture contract, the establishment of a joint ventures in the Gold Show (China). However, in March 2011, LGD suddenly announced that it had decided to postpone the start date of the production line in view of the gradual saturation of the LCD market.　　Six months later, the start of the line has been postponed once the commencement date has been set. As for the project in the future specific start time, Lee from want to say is not clear.　　The Daily economic news reporter contacted LGD China's media director yesterday about the project postponement, but it did not respond.　　Main reason or department market depressed foreign media reports, LGD postponed the project construction reasons is global large size panel sales increasingly saturated, worry about the market oversupply. These views are also recognized by some people in the industry. "The LGD to postpone the line should have a direct relationship with the current downturn in the panel market," he said.　　"Allwin Consulting Industry Center deputy general Manager Li Chui Analysis said, because the current panel capacity release rate is far greater than the growth of demand, panel processing rate of only about 70%, panel enterprises are facing the loss of pressure." Data show that from March 2010 to June 2011, 42-inch panels have fallen from 423 U.S. dollars to 255 U.S. dollars, 40-inch panels from 410 U.S. dollars to 235 U.S. dollars, 32 inches from 268 U.S. dollars to 162 U.S. dollars.　　Earlier this month, prices of LCD TV panels fell again, to 2~8 dollars. In this respect, Li Chui said, compared to other panel lines, the 8.5 generation line of the amortization depreciation amount is very high. With a 8.5-generation line investment amount of about 3 billion U.S. dollars for example, Korean manufacturers depreciation is generally 4 years, China's Taiwan manufacturers are 5+1 annual depreciation, so the annual depreciation amount is as high as 500 million ~7.5 billion dollars, "this makes the manufacturer's profit demand quite big." "The data showed that LGD lost $290 million in the second quarter of 2011, and recently plans to invest $2.83 billion to retrofit existing panel production lines to meet the demand for OLED panels, and hopes to start mass production of OLED panels from the second half of 2014."　　This once let the public opinion doubts Guangzhou's 8.5 generation project restart possibility. However, Lee wanted to say that it was only a postponement, not a cancellation.　　OLED also has a popular process, and high technology investment costs, to achieve the final mass production and substitution, time will be quite long. "The project should still be built. "Li Chui that there is news that the country will increase the import tariffs on LCD panels, once the increase in tariffs will create great pressure on the offshore panel giants, so LGD will not give up the opportunity."　　Due to the construction cycle of 18 months ~24 months, the project will eventually achieve mass production in 2013. Short-term good competitors "this is a boon to China's domestic panel manufacturers.　　Hong Shibin, vice chairman of the Marketing committee of China Household Electrical Appliances Business Association, said the project was postponed, easing the pressure on domestic panel companies.　　Although the current market environment is not optimistic, but China's two 8.5-generation line has recently put into production. In late June, the Beijing-Orient 8.5-generation TFT-LCD production line was put into production in Beijing with a total investment of 28 billion yuan, which mainly produces 26-inch to 55-inch monitors and LCD TV screens. After the amount of postpartum, will achieve an annual output of 13 million LCD screen, the annual output value of nearly 20 billion yuan.　　August 8, TCL Group Shenzhen huaxing photoelectric 8.5-generation LCD project also started, the total investment of 24.5 billion yuan, the main production of 26 inches to 32 inches, 46 inches and 55 inch LCD TV module, the amount of postpartum production of about 14 million LCD TV module. Hong Shibin that the above two lines and the LGD of the 8.5 generation line is different, the former has a more profound meaning, that is, "improve the domestic market dependence on imports," even if it is a loss.　　For LG, investment is for profit.　　Lu Xianbo, Deputy Secretary-General of China Electronic Chamber of Commerce, said that the current domestic panel production enterprises are the urgent task is to achieve mass production, control the cost rate, and thus shorten the investment recovery cycle, so as not to assume greater risk, into the "more losses, more investment, more loss" of the circle.　　Hong Shibin estimated that the domestic production of two 8.5 generation line to achieve the end of the year, LGD 8.5 generation line delayed the start, at least gave the former half a year of running-in time, so that its project market space is not completely Samsung and LG quickly divided up. There are market analysts believe that in the current market downturn, the recent international panel manufacturers are strictly controlled production capacity, reduce the amount of investment. LGD at this time postponed 8.5 generation line work, meaning follow-up new production can be controlled by the speed, equivalent to "disguised production reduction", our Taiwan Panel Enterprises double Tiger Friends Tatsu, Qi Mei Electric, Chunghwa color crystal, etc.Will benefit. Responsible Editor: NF045