This excerpt taken from the LPL 6-K filed Jun 1, 2007.
LG.Philips LCD Decides on Subsequent Investment
Seoul, Korea (June 1, 2007) - LG.Philips LCD [NYSE: LPL, KRX: 034220], a leading innovator of thin-film transistor liquid crystal display (TFT-LCD) technology, announced that its board of directors decided at a meeting held today to maximize capacity at existing production lines rather than invest in a new 5.5 generation plant.
LG.Philips LCDs board of directors also decided during todays meeting that the company would build a new facility at a later date, with mass production slated to begin in 2009. No decision has been made on what generation of equipment will be used at this new plant. The company expects to complete a detailed next investment plan within this year.
The decision to alter our original plan to invest in a 5.5 generation plant was a strategic one, said President & CEO of LG.Philips LCD, Young Soo Kwon. We will instead review investment in a next generation facility, which will give us a long-term competitive edge in the large-area TV sector. At the same time, we will maximize the capacity of our existing production lines to meet rising demand.
The LCD industry has been growing rapidly and some LCD manufacturers have continued to expand production capacity through investments in new facilities. At LG.Philips LCD we believe that right now maximizing the efficiency of our existing facilities and equipment is a better strategy.