LG.Philips scraps plan to build LCD plant

South Korea's LG.Philips LCD Co said yesterday it was scrapping plans to build an older generation liquid-crystal-display (LCD) facility and will instead invest in an advanced plant to meet demand for larger-sized flat screen televisions.

"The decision to alter our original plan to invest in a 5.5-generation plant was a strategic one," Chief Executive Kwon Young-soo said in a statement. "We will instead review our investment in a next generation facility, which will give us a long-term competitive edge in the large-area TV sector."

The company has yet to decide what generation the new plant will be, but said in the statement it expects to complete a plan this year.

The new plant will aim for mass-production in 2009, LG.Philips said.

Previously, LG.Philips, the world's second-largest maker of liquid-crystal displays, said it would invest in the older generation LCD production line instead of an advanced eighth-generation facility optimized for larger-sized TVs.

A 5.5-generation facility is optimized to produce computer monitor screens of up to 22 inches and TV panels of up to 32 inches.