Despite poor earnings that could have stalled its upgrade plan, LG Display vowed to press ahead with campaign to upscale and bolster capacity in production for OLED panels through $1 billion ammunition it has secured through loans and debt issues.
The South Korean top display maker aims to jack up the OLED output capacity from 10 percent of the total now to up to 40 percent next year as a measure to offset weakness in liquid crystal business amid price competition with Chinese rivals.
According to industry sources, LG Display Thursday raised $300 million through green bonds overseas, where the proceeds are set mainly for eco-friendly projects. LG Display received a green certificate for compliance of OLED business with all ecological and energy saving standards.
In September, LG Display signed a syndicated loan contract worth close to $700 million with four Korean banks. With a large amount of money raised for mid-and long-term capex, the company is expected to gain speed in ongoing efforts to increase production capacity for large-sized OLED TV panels.
LG Display is rolling out 70,000 sheets of OLED motherglass per month at E3 and E4 lines in Paju, Gyeonggi (Generation 8.5 OLED fabs). A new plant in Guangzhou, China will add 60,000 sheets a month from the second half of next year, bringing its total production capacity to 130,000 sheets. A Generation 10.5 line being built in Paju will skip LCD panels and jump start OLED production, sources said.
By Kim Gyu-sik and Minu Kim
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