Plasma global market share less than 6% exit just a matter of time?

once rage plasma TV, now in the mainstream home appliances market has been difficult to find traces. At the end of last year, the "father of the plasma" said Panasonic announced that it would completely end its plasma business in March 2014. Plasma TV market is declining, the global market share has less than 6%, at present only Samsung, LG and Changhong still adhere to, Changhong is the only company with plasma panel production lines.





with the plasma camp shrinking, the future of plasma technology becomes bewildering. "Daily economic news" reporter found that "stick" Sichuan Changhong spent billions of years to build the plasma panel project losses, there is news that the project is currently active in controlling production. At the same time, Sichuan Changhong group began to lay low, for its plasma project to seek the transformation of the commercial sector.




Will
plasma TV become history? How does a plasma that is thought to have obvious technical advantages declined? How to change the plasma panel project? Can plasma be reversed in the commercial field? Reporters on-site visits to the production base and the people who know in-depth exchanges, and interviews with a number of panel industry experts and front-line electrical appliance sales staff, trying to uncover the plasma survival picture through this section.





Market Article





Plasma TV edge of the War: Changhong PDP project was exposed to intermittent production





even the upcoming 51 short holiday specials and the 2014 Brazil World Cup, can not let plasma TV sales to boost up, a few years ago a week tens of thousands of sales have long been history. Whether in the traditional home appliances stores, or mainstream electric platform, plasma TV has been difficult to find figure.





data All herald a brutal fact: Plasma TV shipments are shrinking every year, the current global market share is only 5%~6%. By the end of 2015, PDP (plasma) TVs will disappear completely, according to Npddisplaysearch.





Dependent。 With the PDP TV market shrinking, PDP panel production line will also face life and death test. People familiar with the "Daily economic news" reporter revealed that Sichuan changhong (600839,sh) Sichuan Rainbow Display Parts Co., Ltd. (hereinafter referred to as Hong-European Company) operating PDP panel project is also facing embarrassment, since 2014, capacity compression, staff diversion, The problem of high inventories hangs over the factory area of Rainbow Europe in the suburbs of Mianyang.





Changhong Group Planning Minister Radian to the "Daily economic news" Reporter said that the company's production situation is normal. "At present supply, production is very stable", "no production reduction."





reporter learned that, 2007 years or so, the domestic panel industry multifaceted, Sichuan Changhong invested heavily in the PDP panel project, but the project has been in production since the huge loss of hundreds of millions of yuan, the outside world as Sichuan changhong performance drag.





industry insiders believe that, from the economic efficiency, Changhong PDP project is not a success, but for Changhong, the attempt to enter the upstream is good, technology and talent accumulation will be rich resources, but the Changhong PDP project currently needs to maximize the completion of depreciation.





market share accelerates atrophy/





"Plasma TV is used to fight the price war, usually not sales, because not to make money." "Chengdu, a Gome home appliances store Changhong TV sales staff told reporters that this year 51 activities, the entire Chengdu Gome store only 500 Changhong 51-inch plasma TV for sale, only 2999 yuan, compared to the same size LCD TV is nearly 1000 yuan."





face 51 small long vacation and Brazil World Cup promotion opportunity, Changhong in Chengdu, a number of store flagship products are still mainly LCD TV. "Plasma on the one or two models, not how to sell, purchase also into less." said the sales staff.





in fact, "Daily economic news" reporter visited several home appliances stores in Chengdu, the current plasma TV only Samsung and Changhong have a small number of models for sale. There are Samsung sales personnel blunt, LCD TV is the mainstream, Plasma TV products are more to enrich the product line, its price than the same size LCD cheap near thousand yuan, "not to make money are doing."





built-in set-top box, WIFI, Android latest system, 4K, 8 core chips, ultra-thin ... Nowadays, the high-frequency words in the TV store are no longer liquid crystals or plasma.





"Plasma was already marginalized by the market. "Home appliance observer Liu Buzhong said that China to do plasma enterprises only Changhong, but changhong in the plasma did not continue to exert force."





April 19, a reporter in the domestic mainstream electric business platform search found that the platform in Chengdu, Beijing and other regions only LG, Samsung, Changhong, Panda, such as a total of 5 brands of 8 plasma TV shows the sale of goods. In these areas, LCD TV has nearly 30 brands of more than 330 goods available for sale. Subsequently, the reporter searched a number of electric quotient platform found that plasma and LCD TV in the sale situation is similar to the above situation.





, a well-known domestic appliance brand Chengdu Sales executives to the "Daily economic news" Reporter said that the domestic mainstream home appliances market only some plasma special models for sale, two or three-line city or rural market there are some low-end models in sales.





"by the upstream plasma panel supply and downstream of the impact of plasma TV demand, the current plasma panel market share is gradually decreasing." Allwin Consulting Business Director Wang Dongchun said, Plasma TV shipments are also gradually narrowing trend. In February 2014, the Austrian Dimensional Consulting (AVC) statistics, the end-market sales are 36,000 units, the market share is only 1.9%.





Npddisplaysearch data show that 2012 global television total shipments of 233 million units, including plasma TV shipments of 13.35 million units, the market share of about 5.7%; In the first half of 2013, the plasma television market share shrank to about 5.1%. According to Npddisplaysearch forecast, 2014 PDP TV shipments will still drop 48%.





as the market shrinks, many manufacturers opt out. Reporter learned that from 2008 onwards, Pioneer, Hitachi has announced the exit PDP panel production. At the end of 2013, Panasonic officially withdrew from the plasma TV market and ceased production in December 2013. Thus, the global plasma panel manufacturers will only be left with Samsung, LG, Changhong and so on.





Bing that from Samsung and LG's strategy, the exit PDP is also a matter of sooner or later. According to South Korean media reports, 2013, Samsung PDP panel production capacity only 80%, down 12% year-on-year. At the end of March 2014, Samsung Group announced that its PDP panel maker Samsung SDI and raw material producers of the first wool weaving decision to merge, which is seen as a prelude to Samsung exit PDP.





employees say holidays are getting more and more





compared to the PDP market, the company's internal technical staff Liyuan (alias) life is slightly calm. However, since January 2014, his holiday has become more and more. In the outskirts of Mianyang, a factory, the company's only PDP production line is still in operation, but Liyuan and many of his colleagues have felt the PDP face crisis.





According to Liyuan introduction, since 2014, the company began to quota quantitative, the basic production of half a month to stop half a month. The reporter from the company's multiple sources to confirm the fact that its intermittent production, but Changhong group to the reporter denied this statement.





Reporter obtained a copy of the company's production data show that 2014 1 ~ March, the company produced a total of various models of PDP module about 100,000 units, and its April production plan for only 37,000 units. In 2013, the annual production amounted to more than 1.2 million units, producing about 100,000 units a month. Rainbow Europe PDP production line design capacity of more than 2 million units per year.





with the monthly production capacity of compression, the company's production line of the rainbow Europe is also strictly controlled. According to the above data, March 2014, April, the Rainbow Europe PDP production line plan to start time is less than half a month.





Limited production may be related to inventory, as of the end of February this year, the company's PDP module finished inventory of more than 200,000 units, more than safe inventory of nearly half, of which more than 60,000 units of overdue inventory.





capacity control, the staff's working hours and the number of people naturally reduced. Liyuan said that the company offered the choice of employees voluntarily diverted to changhong other factories, the natural decline in income, several of his colleagues have chosen to take the initiative to leave. Earlier this year, Liyuan and his colleagues received a mass mailing from executives at the company of Rainbow Europe, with only one subject to control staff turnover.





Sichuan Changhong Annual report shows that the company 2013 annual operating income of 1.74 billion yuan, net profit loss of 347 million yuan, 2012 years operating income of 1.5 billion yuan, net profit loss of 738 million yuan. In the industry's view, the loss is not the biggest problem of Rainbow Europe, after all, its fixed assets depreciation of hundreds of millions of yuan per year.





"Transformation", "operating cash flow is positive", this is Liyuan heard about the company's few good news. For the transformation direction, Liyuan is also very confused, in the plasma and LCD of this war, now Changhong almost alone.





Rainbow European Company untimely?





and Rainbow Europe PDP panel production line of embarrassing situation in contrast, the LCD panel in the heyday. More than tens of billions of yuan production line at home and abroad High-volume Online, the relevant listed companies billions of of the annual net profit also become the norm.





reporter learned that the Beijing-Orient, for example, the total investment of 32.8 billion yuan in Beijing Oriental Chongqing 8.5 generation of new semiconductor display and system project has been built. 2013 Beijing Oriental's Chengdu, Hefei, Beijing production lines full production full sales, the profit reached 2.35 billion yuan, an increase of 811%. In addition, TCL's huaxing photovoltaic net profit last year amounted to 2.26 billion yuan, for Tcl contributed nearly 80% of the profit.





carding industry development in recent years, seems to be able to clearly see the enterprise in different roads farther and further, can see the decline of the plasma of accidental and inevitable. Plasma and liquid crystal war has a long history, almost from 1993 South Korea developed the first color plasma TV has begun.





October 2006, Changhong Group Holdings of Sichuan century double rainbow investment 99.9 million U.S. dollars mergers and acquisitions steropeinvestmentsb.v75% stake, thereby indirectly holding South Korea's third-largest plasma manufacturer of South Korea's orionpdp75% stake.





the acquisition was recognized as a rare successful overseas acquisition. Changhong to the price of less than 100 million U.S. dollars to fix the core technology of plasma, with the establishment of the Rainbow Europe company, and invested heavily in the construction of China's first independent intellectual property rights of the new plasma production line.





2007 Changhong officially launched the first phase of Rainbow Europe PDP project, planning total investment of 675 million U.S. dollars, annual output PDP module reached 2.16 million, and planning through three phase construction, the total investment of more than 2 billion U.S. dollars, forming an annual output of 6 million plasma screen module capacity.





just as Changhong ready in the plasma market, the domestic liquid crystal giant Beijing East has plans to build a second LCD panel production line in Chengdu.





2003, also through the acquisition of South Korea well-known enterprises Hyundai Group separated from the modern electronic TFT-LCD (ie, thin film transistor liquid crystal display, commonly known as LCD panel) business, BoE access to the LCD panel production field. After 3 years, the fifth generation of Beijing-Orient LCD panel to achieve mass production, trial production capacity has reached 30,000 base plate.





"In fact, Changhong launched the plasma panel production line, the whole market to liquid crystal, plasma supplemented by the situation has been more obvious." "Liu Buzhong said.





2008, Hitachi, Pioneer has announced the withdrawal of plasma panel production, but "as long as the plasma market is still, Changhong is the undisputed leader of the country", "plasma on the large plate technology has a clear advantage of the right to speak," "plasma screen than the LCD screen has a broader space for development" The voice still supports Changhong. July 2009, Changhong through the issuance of convertible bonds 3 billion yuan, and then to the rainbow European company to increase the capital of 1 billion yuan.





in Changhong decided to increase the capital of the company, the two kinds of panels more and more obvious differentiation. Sadie data shows that in the first half of 2009, the company has not reached the volume of production, the domestic market plasma TV sales of 811,000 units, and LCD TV sales up to 8.701 million units.





almost at the same time, Tcl quickly began to layout the LCD panel production line. November 2009, TCL Total investment of 24.5 billion yuan in Shenzhen, the first 8.5 generation of thin film transistor liquid crystal display (TFT-LCD) Production line project announced the official launch, two years later to achieve mass production, 2012 to reach the processing of glass substrate about 100,000 full capacity, become the main source of TCL profits.





PDP incomplete reverse attack





in early 2010, the LCD panel appeared in short supply situation, the big plasma giants quickly expand production. January 2010, when the company 42-inch plasma panel to achieve full-scale production of 2.16 million film, Panasonic Niqi, the third factory began to mass production, its total annual output has been increased to 12 million.





It is understood that at that time market research organization DisplaySearch Greater China Vice President She Qin Benefits said, "The Global Plasma Panel competition has entered the oligopoly stage, Panasonic, Samsung, LG Electronics, etc. with more than 5 million annual output capacity, to really grasp the cost advantages of plasma panels, Rainbow Europe's Plasma project also needs to continue to expand. ”





at the same time, public reports show that the leaders of national ministries, the major enterprises are also intensively visited Changhong. "At that time, there were leaders coming to inspect it, and it was rarely seen. "Liyuan said.





In various encouraging, Changhong confirmed 2007 years of planning, announced that will be expected to invest 2 billion U.S. dollars, through the three phase of construction, so that the final production capacity of the rainbow Europe reached 6 million, into the world's top three, beyond LG, closely follow Panasonic, Samsung. In the face of the LCD panel shortage and price increase pressure, TCL, Konka and other enterprises began to book the plasma panel Changhong.





2011, 3D film "Avatar" in the global Upsurge, Changhong, Panasonic, Samsung and other plasma manufacturers have occasion the concept of plasma 3D, at the same time the main energy-saving, Full HD concept, and even put forward the current network television. In addition, plasma giants through low-cost strategy to kill into the market, once ushered in a strong counterattack.





Allwin Consultation statistics show that in the first half of 2011 LCD TV Retail Total size of 16.921 million units, an increase of 7.8%; LCD TV retail sales 65.66 billion yuan, sales fell 1.4% year-on-year. Over the same period, plasma TV sales of 1.15 million units, the year-on-year increase of 29.2%.





However, the short lead did not let the plasma regain advantage, the LCD panel after hibernation quickly occupied the market. For example, Beijing Oriental, although experienced the "6 years 5 losses", but by the end of 2011, Beijing Oriental 4 LCD panel production line has been fully achieved production, of which the 5th generation of TFT-LCD production line also experienced two times expansion.





with the production of LCD panel recovery and technology gradually improve, plasma quickly lose competitiveness, low-cost strategy has not been enough market share, but let the plasma panel manufacturers overwhelmed. In fiscal 2012, the plasma giant Panasonic lost 765 billion yen, losing more than 700 billion yen in two consecutive years, a record high.





plasma panel industry from blew, market share quickly fell into single-digit digits. November 2013, Panasonic announced the withdrawal of plasma, which makes the industry feel extremely sorry, "plasma is a gorgeous technology, Panasonic's exit is a pity." ”





Industry Article





plasma decline behind: by the capital Deviation and encounter technology closed





plasma (TV) can have a large angle of view, brightness uniformity is good, dark dynamic range, image level is rich, image trailing time is small, dynamic definition is high, the color restore ability is good, display color nature and so on outstanding quality characteristic. These advantages have made many television manufacturers believe that in the fierce competition in the flat-screen TV market, plasma will always occupy a place.





"The layman buys liquid crystal, the expert buys the plasma", the color TV industry had such rumors. But the market's development is not always as people want, this has to let the plasma TV fans sigh. Bing, director of Npddisplaysearch Research, told the Daily economic news that the decline of plasma TV was the result of "bad currency expelling good currency" in panel technology industry, and the market inevitably continued to decline. But Changhong Group believes that plasma has always had a certain consumer market.





So, why does the plasma fade out of the panel stage? Is there a fixed consumer market? When is plasma TV completely out of the market? In this respect, "Daily economic news" reporter recently interviewed a number of industry insiders, trying to uncover the reasons behind the decline of plasma television.





was dumped by the capital plasma





"Plasma failure is largely an accident, the result of capital selection." "One of the industry's many years in the plasma industry," said the daily economic news reporter. "Technically speaking, PDP (plasma) has obvious advantages, but behind the LCD (LCD panel) The core problem is not technology, but quality." The vast majority of capital to LCD,PDP quality is difficult to achieve breakthroughs. ”





in its view, the power of capital may be revealed from the development of the Beijing-Orient.





Beijing-Orient predecessor is an electronic tube factory, in April 1993, by means of targeted recruitment to set up joint-stock company, the core business positioning in the field of display. 1997 Beijing Oriental B listed in Shenzhen Stock Exchange, the 2001 BoE a successful listing, is the rare at the same time in a, B market listed companies.





public data show that since the listing, the BoE for the expansion of production capacity of the constant orientation of additional shares. In 2006 for the Beijing 5 generation line set to increase 670 million shares, 2008 in order to Chengdu 4.5 generation line 410 million shares, 2009 for Hefei 6 generation line set to increase 5 billion shares, the end of 2010 for Beijing 8 Generation line additional 3 billion shares. For the third time, 12 billion yuan was raised and 9 billion yuan was raised for the fourth time.





"The success of the BoE is largely the result of capital operations, mainly through directional placements," he said. "These people said that most of the Beijing-Orient joint venture with the government investment, but many local governments do not readily billions of, tens of billions of dollars of funds, and unwilling to bear the risk, so through the way of the issuance of the equivalent shares, after 24 months or 36 months of the stock freeze period, Local government-owned investment companies, through the two-tier market, will release the shares, not only to recover the investment, but also to obtain considerable profits. "This pattern was followed by a lot of business imitations. ”





data show that 2001-2011 years, Beijing Oriental received the government subsidy reached 1.7 billion yuan, and repeatedly avoided the "hat" danger, but its financing-investment-loss-refinancing path has been criticized by the industry.





the rapid financing and project of the BoE put pressure on the plasma panel. In this way, BoE currently in the domestic panel production line of 21, the total investment of more than 200 billion yuan, plus 2009 years Tcl launched Huaxing photoelectric, the entire domestic LCD panel investment more than 300 billion yuan. But the plasma aspect only Changhong's 4 billion yuan, how possibly competes with it? said the industry personage.





in fact, the amount of input is also Changhong's intervention in the plasma panel industry is an important consideration. "Make a liquid crystal 8 generation line need to invest 20 billion yuan, and do a plasma only invest 2 billion ~40 billion, this is the lowest threshold, (Changhong to try) No matter successful failure, can not completely deny it. "Bing thinks.





panel boundary "bad currency expel good currency"





Bing that the decline of plasma television is the panel technology industry in the "bad currency expelled good currency" phenomenon. "Good things don't necessarily survive. Home appliance Market has confirmed this theory, the best things are certainly not cheap, sell a small amount, a large number of sales must not be the best quality, this is a rule. "Mention the plasma market atrophy, Bing appears some regret."





However, there are also industry insiders said that the technical closure of the plasma panel industry is an important reason for unsustainable.





"plasma industry just exerting force, technology mainly by several big giant grasp, relatively closed, plasma five Tigers (Panasonic, Samsung, LG, Hitachi, Pioneer) actually not willing to layout production lines in China, do not want to sell technology to China. Home Appliance Watcher Liu Buzhong told the Daily economic news reporter.





plasma giant's closure from Changhong's takeover of Orion can also be seen.





when the 2006 Changhong target for the acquisition of Korea's Orion company, in order to obtain its cutting-edge core technology and patents, the Korean media, business and society's opposition to the wave of unprecedented intensity. Although the Rainbow Europe PDP production line through 3 years to achieve the volume production, but Changhong's "classic acquisition case" has not changed the overall plasma technology closed pattern.





technology closed The result is that the vast majority of enterprises have to quit, the development of liquid crystal industry, a more stimulating annual large amount of money into the production line LCD panel expansion, LCD TV in color, reaction speed and other aspects of the problem is gradually resolved.




The large concentration of
LCD industry has also brought more problems to the upstream of the plasma industry. "Any industry has an industrial chain effect, if the end product output gradually shrinking, its upstream supplier cost increases, along with the plasma panel supporting facilities, such as components and other price costs are also gradually higher than the LCD panel upstream product prices, industry chain encounter challenges." "A person in Korea engaged in plasma business for many years, the industry believes."





The industry insiders pointed out that, in fact, a large influx of global capital to the LCD panel Another important reason is that the use of LCD panels a wider range. "From mobile phone to super big screen TV, LCD panels can play a role, so the favor of capital is also higher." "BoE's first production line mainly includes 17-inch, 19-inch LCD panel and 20.1-inch, 26-inch, 32-inch LCD TV panel."





Changhong Group Planning Minister Radian to the "Daily economic news" reporter said, plasma is not like liquid crystal occupy a large number of market share, one is because fewer manufacturers, "such as a market only one or two to do plasma, there are 5 lcd, that in marketing may have some not objective interpretation, The promotion will affect the plasma sales ", and the second is because the market itself demand is limited," some of the dynamic screen, color is not too high demand for consumers will choose LCD TV. "





but the market does not believe in tears, once the father of the plasma Panasonic has been completely farewell to the "Global color TV Boss" identity, Changhong also gradually shifted the strategic focus.





in fact, Changhong has already begun to layout LCD production lines as early as 2009. June 2009, Changhong and Taiwan's friends Tatsu Photoelectric company subsidiary of the King-Chi photoelectric joint venture company to invest in the production of LCD TV module. In addition, in April 2008, Changhong Holdings of the company began to start OLED projects in Chengdu.





"If that year Changhong announced that the 2 billion dollar investment is not to the plasma panel, but to the LCD panel, perhaps the market position of Changhong color TV is completely different today." "Liu Buzhong has pointed out in the article.





plasma exit just a matter of time?





since the plasma has a high degree of color reduction, dynamic picture does not drag tail, can be a wide range of advantages, then it is not possible in the panel market usher in a new round of reverse attack? Although Radian to reporters, will continue to do plasma panels, and said the plasma business is still in a stable state, but many people in the industry still believe that plasma is about to exit the mainstream consumer market.





Consulting Senior researcher Rehongsen that Panasonic was the last pillar of plasma, Panasonic after the withdrawal, Plasma TV marketing will also reduce the original weak marketing can not keep pace with the market. "At the same time, 4K Super HD, OLED and other new concepts have been proposed, only by Changhong, Samsung, LG and other few companies with the huge LCD camp is difficult to maintain the long-term development of PDP." ”





Rehongsen predicts that 2016 years later, plasma TVs will decline globally, while the domestic plasma market will be slower than 1-2 years in global markets.





Allwin Consulting Business-to-business Division research Director Wang Dongchun that plasma TV exit is only a matter of time. "At present, only Samsung, LG, Changhong Three are still adhering to, but from the three of the future planning look, but also the trend of decreasing year." ”





"Consumer demand is changing, the pursuit of" thin "products, this is the weak plasma. LCD in its technology and products continue to introduce new, from UD to FHD to UHD, coupled with surface, high color gamut technology, reverse PDP technology update very little. "Wang Dongchun said.





However, the stick of plasma technology is still hopeful. In an interview with the Daily Economic news, one of the company's technicians said he still hopes that the improvement in marketing will usher in the second spring of plasma TV. "Do industry is so, cast into the real gold and silver, the risk and reality is so cruel, but believe that the market is still a recognized day." ”





but such adherence to the enterprise and the market, seems a little stubborn. "Plasma has long been not the strategic focus of Changhong, now Changhong's strategic focus has turned to smart home appliances." "Liu Buzhong said.





According to people familiar with the matter, Samsung, LG did not completely give up plasma, still have a very small part of plasma, the purpose is to "enrich the product line." Changhong is still adhering to the plasma market, Radian said, now Changhong did not quit the plasma TV field of the plan, "This product has a special consumer groups, the plasma itself has advantages of technology, this consumer group should be able to maintain." ”





However, Bing that plasma TV as a civilian product, the development of the industry is determined by the size of the economy, will not be determined by the needs of a few people.





Rehon, said, Panasonic quit the plasma market, Changhong or the opportunity to complement, earning PDP final value. Therefore, Changhong's plasma business will continue for several years, but the future exit is inevitable. Bing that, after Panasonic quit plasma TV, the market will be quickly occupied by LCD TV.





Npddisplaysearch's latest quarterly report on global television shipments and forecasts shows that while global television shipments are expected to grow by only 1% per cent in 2014, LCD TV shipments will grow by 5%, and some LCD TV shipments are being traded by the decline in PDP and CRT TVs.





《《《





Transformation Chapter





Changhong layout Plasma Commercial upstream materials supply chain it is difficult to maintain the long-term





Plasma TV is almost an industry consensus, optimists believe the plasma market can still maintain a small amount of space, pessimists assert that plasma TV will die in a few years. Clearly, regardless of the outcome of plasma television, the relevant enterprises need to take a transformation of the road to rebirth.





in fact, Changhong Group is a low-key layout of commercial plasma splicing screen (MPDP) market. At the end of last year, Changhong Group's Korea Orion Co., Ltd. (hereinafter referred to as Orion) and a Sichuan commercial display enterprise joint venture to establish Sichuan European Union commercial Display System Limited (hereinafter referred to as the European Union Company). The original South Korean plasma technology experts, current European Union company chairman Hucheng accepted the "Daily economic news" reporter interview, said the company will rely on Changhong PDP production line, will Orion seamless splicing project relocated to Mianyang, a large expansion of the MPDP market, while digesting Changhong PDP capacity.





According to the Austrian-dimensional consulting (AVC) Business director Wang Dongchun, the 2013 flat stitching market in China continues to grow momentum, sales of 176,900 units, an increase of 21.2%, the government, transportation, energy, finance and other security needs are still large, is expected to maintain a high growth rate of 18.7% in 2014, But 2013 MPDP market share accounted for only 7.4%.





"Plasma in the home and business market situation is the opposite. "Hucheng that the company relies on cost and technology advantages, will rapidly expand its MPDP market share, and finally fully digested the Changhong PDP project 2 million capacity is also possible."





on this, there are concerns in the industry, plate splicing market capacity is limited, MPDP reverse attack difficulties, and the biggest problem is, plasma panel production can not support the entire industrial chain necessary economic scale.





Changhong Low-key layout mpdp/





Hucheng is passionate about plasma technology in conversation. He has been known as the pioneer of plasma television, from Orion to Sichuan Changhong PDP Project executive party Sichuan Rainbow Europe Display Co., Ltd. (hereinafter referred to as Hong-European company), Hucheng has as the backbone of the Orion technology development of plasma technology, and then as the general manager of Hong Europe will be the plasma panel technology localization.





compared to the various media of Changhong group of Smart Home Appliances Conference, its holding subsidiary Orion and Sichuan Joint Technology Investment Co., Ltd. Joint venture to establish a European Union company, and the South Korean MPDP project transplanted to Mianyang's action is quite low-key. And more unknown is, Hucheng again, or will bear the transformation of Changhong Group PDP mission.





Industry and Commerce system data show that the European Union company was only established at the end of 2013, Orion Company holds 40% stake, Sichuan Joint Technology Investment Co., Ltd. holds 60% stake. According to the European Union Company, the company's production base in Mianyang covers an area of 300 acres, currently employs more than 200, of which 98 senior technical experts, more than 30 foreign experts. The company also has Orion in the plasma and did video display in the field of all the technology and patents, is China currently has front-end resources LCD, PDP, MLCD (LCD mosaic screen), MPDP the most complete series of commercial display components (including modules) and system machine manufacturing base.





Hucheng in the daily economic news reporter, said the current Orion in South Korea's equipment has been packaged, only to transport to Mianyang, after the relocation, Orion 42-inch plasma panel line will be discontinued. For the relocation reasons, Hucheng said, Orion Korea production line size is not an advantage, in the manufacturing costs have been unable to compete with MLCD.





in fact, according to the introduction of the information, Orion is the only company engaged in MPDP production in the world, export-oriented products, China is its most important market. European Union company office Director Qingyong introduced, South Korea's high labor costs, the project moved to Mianyang, the European Union company will rely on the company's PDP equipment, using the form of leasing first small batch production, market development and then gradually increase.





according to Hucheng introduced, from the company's PDP panel output, through the European Union's patented technology and equipment for border cutting and other processing, for commercial splicing screen market, will directly reduce the cost of MPDP, so that its price drop significantly, or even lower than the MLCD, And MPDP has better performance than MLCD and smaller side seam, so the MPDP products of the European Union company will have a huge market advantage.





for the MPDP development model of the European Union, Rehongsen, a senior researcher at the consulting company, believes that under the synergy with Changhong, the great potential of the European Union's MPDP products in the Chinese market will be activated.





MPDP Digestion 1.2 million pieces of rainbow production capacity? /





for the Rainbow European Company, the MPDP of the European Union Company may be a turnaround. Hucheng, who worked in Rainbow Europe for many years, also confessed to the shrinking of the PDP household market and said that the MPDP of the European Union would digest the company's capacity.





according to the European Union Company's plan, January 2015, the European Union company will realize 40,000 piece MPDP quantity production, 2015 second half, expands the production to 100,000 pieces, then expands the capacity by the 6 month cycle. Hucheng said that if the European Union company develops smoothly, it can digest 1.2 million pieces of production capacity of Rainbow Europe company.





for the development of tablet splicing market, Rehongsen that the advancement of China's urbanization process, especially the expansion of the construction of the western region, for our seamless splicing of the development of the market to provide a greater space, the government's construction of Ping An city will be seamless splicing business brings a series of needs, including traffic, urban management, Public security and other security monitoring.





In addition, the MPDP in the flat splicing market increases the overall rate of increase in the trend. From the current point of view, due to fierce competition in the field of MLCD, Saip and other LCD splicing manufacturers began to pay attention to the MPDP field, the last two years of customer recognition of MPDP products have been upgraded.





Wang Dongchun that, at this time, the European Union company into the MPDP market, the price relative to other MPDP enterprises obvious advantages, at present the most important is the establishment of sales channels, as well as customer brand recognition. Compared with the MLCD technology, the main advantage of MPDP is the seam, currently up to 2mm. In terms of shortcomings, plasma splicing fatal shortcomings "burning screen" has been basically resolved, the main disadvantage is that in the transport and installation of the screen has the risk of damage.





MPDP has the advantages of high resolution, no flicker, accurate color reduction ability, uniform brightness, wide viewing angle and small seams. In the command and control center and other high-end applications, MPDP to its high-quality display effect, small seam and other advantages occupy a larger market. However, Rehongsen said that in recent years LCD business technology has been progressing, has been to the high-end areas, MPDP to achieve a commercial market reverse attack, difficulties.





Qingyong that, although MLCD is the market mainstream, but its price has fallen to the "floor", there is no profit, 51-inch MPDP the amount of postpartum, the price advantage is very obvious, and the European Union's MPDP seam can reach 1.8mm, this is MLCD can not match.





Although the MPDP has cost and technical advantages, the current commercial display market is the same as the TV panel market a few years ago. As an important display platform terminal in security system, MPDP and MLCD have been paid more and more attention in recent years, but MPDP market share is shrinking gradually. 2013 China tablet splicing market MLCD products accounted for the mainstream, sales accounted for more than 92.6%,MPDP market share of 7.4%.





upstream materials or constraints on future development/





history is surprisingly similar, MPDP seems to face the same situation as the PDP. It is noteworthy that the European Union Company's business model of the largest cost advantage from the company's PDP panel production line, but the company PDP panel production line maintenance has become a mystery bureau.





In this respect, Npddisplaysearch Research director Bing bluntly, according to industrial law, too small will lead to industrial chain fracture, some raw materials and catalysts, such as component manufacturers will opt out of the industry, even if this technology will not immediately die, plasma industry in the future there is no hope.





and as the "originator" of plasma technology, Hucheng seems to understand, save the Rainbow European Company is to save plasma. He told reporters that the ability to maintain the company's production, mainly depends on production, when the production is low to a certain extent, the solid cost can not be sustained, "so we plan commercial products to maintain their normal production." ”





through MPDP Digestion Company's capacity can be achieved? Bing that, splicing the display market is not big enough, even if the European Union company occupies the Chinese market all share also on 500,000 pieces, the commercial splicing screen market is a demand elasticity very small market, even if the price is greatly reduced, the demand will not soar, the global market capacity is limited.





to maintain supply chain is a common problem faced by the company and the European Union. "It is still very difficult for an enterprise to maintain the supply chain. Bing said that the world, basically in 10 million pieces to maintain the industrial chain, and some PDP upstream materials from Japan and South Korea and other countries import.





to the risk of the industry chain, Qingyong Frankly, "we have considered this, but we think this possibility is relatively small." Qingyong believes that the European Union company can reach 300,000 ~40 in a few years, relying on the mpdp of strong profitability, to the industrial chain can be propped up. In addition, Qingyong that if the company can sell more than 1 million pieces a year, it will certainly be able to sustain.





However, Bing believes that even if the company achieves 2 million production capacity, it is not enough to support PDP manufacturers to continue to serve the material supply. "When the upstream manufacturers have problems will stop production, downstream manufacturers will face a great challenge, I estimate PDP production line can only be maintained in the short term." ”





Bing that the company will be in the global PDP production line shut down, as far as possible to digest capacity, complete depreciation. And from another point of view, Bing said, in the entire supply chain before the use of PDP project value, MPDP is also a good direction, but the long-term prospects are not so good, eventually, PDP production line of many equipment can also be turned into solar photovoltaic glass panels.