LG Display Co.`s OLED panel manufacturing plant in Guangzhou, China. [Photo provided by LG Display Co.]

LG Display Co., world’s second-largest display screen maker, celebrated the completion of constructing its new Generation-8.5 organic light-emitting diode (OLED) panel manufacturing plant in Guangzhou, China on Thursday, which would help nearly double its overall monthly output to 130,000 panels.

The celebration comes a year after the Korean panel maker received a go-ahead to build the OLED plant from the Chinese government. The company so far has invested 5 trillion won ($4.1 billion) in establishing the new OLED plant in Guangzhou.

The Guangzhou plant will churn out 60,000 panels monthly, which would push up the company’s overall monthly OLED output to 130,000 panels. The company, betting big on OLED, also has revealed a plan to spend 3 trillion won to expand its Gen 10.5 OLED fab in Paju, Korea last month.

[Photo provided by LG Display Co.]

The company has been shifting its panel business to OLED from liquid crystal display (LCD), whose profitability has been sinking fast due to heavy competition from Chinese makers with cheap products. The Korean maker is reviewing to phase out of LCD business.

Its fast migration to OLED, however, has received mixed views from the market. Some argue that the heavy investment in OLED would only increase the burden on the company’s overall business in mid to long-term as global OLED TV sales have been slowing down its growth pace this year. But others predict the new OLED plant in Guangzhou would mark as a game-winning move for the company as it would help further expand its share in the high-end TV panel market.

Market experts projected LG Display to post an operating loss of 205.2 billion won in the third quarter and 3.5 billion in the final quarter, according to local market tracker FnGuide. The operating loss would be smaller compared to the second quarter when the company reported an operating loss of 368.7 billion won, which almost tripled from the first quarter due to slowing demand and large one-time costs. But experts said it is unlikely for the company to swing back to profit this year.

By Chun Gyung-woon and Cho Jeehyun

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