Changhong Builds A PDP Production Line
September 25, 2006
Changhong Builds A PDP Production Line. Check it out:(SinoCast China IT Week Via Thomson Dialog NewsEdge) SICHUAN, September 25, SinoCast -- Sichuan Changhong Electric Co., Ltd., once the largest TV maker in China, recently started the construction of a PDP (Plasma Display Panel) production line in Mianyang City, Sichuan Province, according to sources.
The production line, co-invested by Changhong Electric and IRICO Group Corporation, a Shaanxi-based color picture tube manufacturer, will cost USD 800 million in total, of which USD 300 million, the investment in the early stage, will be used for infrastructure construction. South Korean plasma TV pioneer OrionPDP will join the cooperation as a third party.
In terms of the schedule, the production line will be completed and put into production in March 2008. By then, it will be capable of turning out 2 million PDP panels every year, equal to the production capacity of Japan-based Pioneer Electronics, the world's fifth largest plasma panel manufacturer.
With regard to the core technology of PDP production, Changhong Electric and IRICO introduced the third party OrionPDP, which alleged the possession of 171 patents in PDP and relevant technological sectors. The president of the enterprise said publicly in August this year that OrionPDP was promoting cooperation with Chinese enterprises such as Changhong Electric and IRICO in creating a large plasma display plant in China.
Changhong Electric originally planned to lay a foundation for the production line on August 8 and make it known to the public at the same time, revealed insiders. Due to some reasons, however, it kept a low profile at last, and even asked its employees to hold their tongues. Not long ago, the company held a press conference for the release of some models of quanta chip flat panel TVs, saying that it would have further movements in the PDP sector. But managers presenting at the conference still disclosed nothing about the new production line.
Since the PDP production line involves interests of different parties, and the investment is huge, all news will be subject to the announcement of the board of directors, according to Guo Dexuan, vice president of Changhong Electric.
Previously, Changhong Electric and IRICO had negotiated an equal stake in the production line. However, after the introduction of technologies OrionPDP, the stake structure is changed into 4:4:2, according to insiders. But the accurate news is that the three parties are now discussing with each other about their stakes in the plant, and Changhong Electric is pursuing a controlling stake.
At present, most of TV makers in China focus on liquid crystal TVs, and the ones previously invested by domestic manufacturers such as BOE and SVA were liquid crystal panel production lines as well. The production volume of plasma TVs had been only one tenth of that of crystal liquid TVs in the first seven months of this year, according to statistics from the Ministry of Information Industry of China. Changhong Electric is one of the few companies supporting plasma TV.
Asked about this, Guo Dexuan said that Changhong Electric had special "affection" for plasma TV, considering it superior to liquid crystal TV no matter from the aspect of technology or from the aspect of cost. Although there is a difference between the sales volumes of the two kinds of products, their sales are roughly the same. At present, Samsung, LG, Panasonic, FHP, and Pioneer Electronics turn out above 99% PDP panels in the world, and the intervention of Changhong Electric and IRICO perhaps can break the monopolization.
(USD 1 = CNY 7.92)
Copyright 2006 Sinocast
Related Tags: changhong electric, electric irico, liquid crystal, production, changhong, Changhong
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