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Sakai Display Products Corp's plant will be a so-called Gen-10.5
facility specializing in large-screen LCDs and will be
operational by 2019, the company said at a signing event with
local officials in Guangzhou on Friday. It said the plant will
have capacity equating to 92 billion yuan a year.
The heavy investment is aimed at increasing production to meet
expected rising demand for large-screen televisions and monitors
in Asia.
Global LCD output was hit this year by the closure of a Samsung
<005930.KS> factory that accounted for 3 percent of the market,
as well as factory stoppages in Taiwan after an earthquake in
March.
China's largest LCD panel maker, BOE Technology Group, began
construction on its own Gen-10.5 plant in Hefei in December last
year, with production scheduled to begin in 2018.
In May Shenzhen China Optoelectronics Technology Co, asubsidiary
of TCL Corp, announced that it would begin construction on a 50
billion yuan LCD plant in Shenzhen.
Sakai Display Products Corp's plans for the Guangzhou plant come
as Hon Hai seeks to turn the joint venture into a subsidiary,
investing a total of 15.1 billion yuan in the company.
The venture will also sell 436,000 shares for 17.1 billion yuan
to an investment co-owned by Hon Hai Chairman Terry Gou, giving
Hon Hai a 53 percent interest in the business and lowering
Sharp’s stake from to 26 percent from 40 percent.
(Reporting by Cate Cadell; Editing by David Goodman)
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