Cumulative investment of KRW 3.64 trillion
LG Display will expand the facility by investing an additional 840 billion won in the module assembly plant at the Hai Phong campus in Vietnam. By expanding the investment this time, the production of small and medium-sized and large-sized organic light-emitting diodes (OLED) modules on the Haiphong campus is expected to increase.
According to Vietnam News and Communications (VNA) and industry on the 8th, Haiphong City in Vietnam approved LG Display’s investment of $750 million (about 840 billion won) on the 7th (local time). LG Display plans to expand OLED production facilities in the existing small and medium-sized OLED module assembly plants starting next month. The new production facility is scheduled for operation in July.
LG Display previously invested $2.5 billion (about 2.8 trillion won) in the Haiphong campus in April 2016. The purpose was to produce OLED and liquid crystal display (LCD) modules. With the approval of this additional investment, LG Display’s total investment amounted to $3.25 billion (about KRW 3.64 trillion). It is the largest overseas investment company in Haiphong City. Locally, it is expected that this additional investment will increase the number of jobs by more than 5,000 and contribute 5 million dollars (about 6 billion won) to Haiphong City’s finances annually.
LG Display’s Haiphong campus last year’s sales surged 624% year-on-year to $5.98 billion (about 6.7 trillion won). It is 28% of the company-wide sales of 24.230 trillion won. The cumulative operating profit of the Haiphong campus in November last year was $230 million (about 260 billion won).
Last year, LG Display recorded an operating loss of 29 billion won. The loss was significantly reduced from the previous 2019 operating loss of 1.35 trillion won. Following the spread of Corona 19, an increase in LCD panel prices due to increased demand for IT products and LG Display’s stable supply of Apple iPhone OLED panels had a positive effect.
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