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LGD will expand investment in next year 2008/10/16 By Seo, Han LGD will increase 500 billion for capital investment in next year. Kwon, Yung-soo, president of LGD said at the meeting with reporters on October 14 that capital investment scale, which was set at less than 2 trillion, will be expanded around 500 billion. He said, “To remain market leadership, we need to invest 3 trillion on annual average. The investment for next year will be plus alpha.” His remarks can be interpreted as preparation for after 2010 despite excessive supply in LCD panel market. So in the second half of next year, additional 8G investment, 11G new investment and additional investment of module plant in Guangzhou in China. But, LGD’s aim is to approach investment of AM OLED in a careful way. Kwon said, “Expect for Nokia, no company shows aggressive leadership. Considering productivity and original cost, there will be no big investments for AM OLED.” LGD considered mass-production investment for AM OLED panel but decided to invest in only 1 line of 3.5 generation. And Toki was selected as major equipment supplier for equipment. The maker will facilitate a strategy so called ‘Business Transformation’ that combines all related industry in next year. Kwon said, “There will be no change in next year. And I will put more emphasis on basic industry.” As the firm established partnership with Am Tran to establish LCD TV module set office, the company will establish additional joint venture with TV maker within China. In preparation for recession next year, the company will maintain cut down trend and increase revenue for netbook and LCD panel for TV to expand market share. Kwon said, “We are expecting the worst case scenario for next year. But the panel price will get back to stabilization after bottoming out in the fourth quarter of this year.” LGD is setting up management plan with exchange rate prediction of 1,000~1,100. Meanwhile, outpost of European Market, Wroclaw Poland module factory will expand two lines in order to improve productivity as soon as possible.