LG Plans To Invest Another 1.9 Billion Yuan To Build A Large Polarizer Project

  On the afternoon of January 17, LG Chemical Co., Ltd., a subsidiary of LG Group, announced in Guangzhou that it has signed an investment cooperation agreement with Guangzhou Huangpu District and Guangzhou Development Zone, and plans to invest about 300 million US dollars (about 1.93 billion yuan) in Guangzhou Science City. Construction of a large polarizer manufacturing plant. It is understood that this will be the first polarizer project in South China.

Hong Qian, deputy head of Huangpu District, Guangzhou, told the reporter of "Daily Economic News" that LG Chemical's base of polarized film will help Guangzhou to create "the world's display capital." Earlier, it was reported that LG Display (hereinafter referred to as LGD), a display company of LG, had to invest about 30.5 billion yuan to build an OLED panel factory in Guangzhou. Hong Qian also said that in addition to LG Chemical, LG Electronics and LGD's series of projects have formed an industrial cluster base of nearly 100 billion in Guangzhou.

It is worth noting that on the same day, Guangzhou Huangpu District took the lead in releasing the country's first IAB (New Generation Information Technology, Artificial Intelligence and Biomedical) leading industrial policy. It is understood that in March 2017, the Guangzhou Municipal Government proposed the "IAB Plan", stating that in 2022, the city's IAB industry scale will exceed 100 billion yuan.

LG reinvests 1.9 billion yuan to build a polarizer project

On the afternoon of January 17, the reporter of "Daily Economic News" learned at the scene that LG Chem plans to invest 1.93 billion yuan in the Guangzhou polarizing film factory, mainly producing large-size polarizers and packaging materials. The project is expected to be 2019. It is completed and put into production, and the output value after production is about 2 billion yuan. This is the first large-scale polarizer production project in Guangzhou and the first polarizer production base in South China.

It is reported that LG Chem is the world's largest manufacturer of polarizers. "Daily Economic News" reporter learned through inquiry that LG Chem's official website shows that the company achieved sales of 206.59 billion won in 2016, a slight increase of 2.2% year-on-year, and net profit of 127 billion won, an increase of 11.5%.

Regarding the significance of the project's landing, Hong Qian believes that this will help Guangzhou to create "the world's display capital." It is understood that the polarizer is called polarizing film, which is one of the three key raw materials of the liquid crystal panel, accounting for about 10% of the panel cost. The larger the panel, the higher the proportion of the polarizer. The reporter learned that in recent years, panel investment has also driven the growth of demand for polarizers. From a global perspective, polarizers are mainly produced and supplied by Japan, South Korea and China.

In October 2017, a research report issued by Shen Wan Hongyuan pointed out that thanks to the average area growth brought by the growth of TFT-LCD large-size panels, global polarizer production capacity is expected to increase from 588 million square meters in 2014 to 2019. 787 million square meters, with a compound annual growth rate of 6.01%.

This is not the first time LG has landed in Guangzhou. The reporter learned that in October last year, the news that LGD was going to invest heavily in the construction of a large OLED factory in Guangzhou was rumored. However, LGD has always maintained a default but not actively announced attitude.

Until December 26, 2017, relevant responsible personnel of LGD China told the media that the joint venture project has been approved by the Korean government. It is understood that LGD invested in the construction of a large-size OLED panel factory in the form of a joint venture company in Guangzhou. The total investment scale is about 5 trillion won (about 30.5 billion yuan), of which LGD holds 70% and China holds 30%.

On January 17, Hong Qian also told reporters that "in addition to LG Chemical, there are also LG Electronics and LGD series projects, which have formed a base of nearly 100 billion industrial clusters."

Guangzhou trillion "IAB map" construction speed

Guangzhou, known as the “Millennium Business Capital”, has been accused of “falling behind” in the first city camp of “North to Guangzhou and Shenzhen” in recent years. In this context, Guangzhou City also proposed a plan for industrial upgrading. Since Guangzhou City proposed the “IAB Plan” to develop strategic emerging industries in March 2017, Guangzhou has spared no effort in laying out the “IAB” industry, and has also introduced many foreign investment.

"Daily Economic News" reporter learned that on January 16, Xiangxue Pharmaceutical (300147, SZ) just announced the signing of cells with the General Electric (GE) Medical Group (hereinafter referred to as GE Healthcare) in Huangpu District and Guangzhou Development Zone. The framework for strategic cooperation in the treatment of industrialization. GE Healthcare will assist Xiangxue Pharmaceutical in the construction of a regional cell therapy industrialization preparation platform and a clinical transformation center project in the region. The two parties will jointly promote the industrialization of immunotherapeutics with high affinity specific T cell receptor (TCR) as the core.

The reporter also learned from GE Healthcare China President and CEO Duan Xiaolu that GE's investment of 800 million US dollars in the Guangzhou Development Zone's biotechnology park will also begin trial operation in 2018, which is the key project of Guangzhou's "IAB Program". At the end of 2016, Foxconn announced that it will invest 61 billion yuan to build a 10.5-generation 8K display eco-industrial park in Zengcheng, Guangzhou.

Today, the landing of the “IAB” industry map in Guangzhou continues. Previously, the Guangzhou Municipal Government stated that it would achieve a total output value of “IAB” of 100 billion yuan by 2020.

The reporter learned that on January 17, Huangpu District of Guangzhou City officially released the country's first IAB leading industrial policy. Li Yaoxuan, director of the Political Development Research Office of the Guangzhou Development Zone, told reporters that at present, the output value of the new generation information technology industry in the IAB industry in Huangpu District has accounted for 80% of the total output value of the industry in Guangzhou, and the artificial intelligence output value accounts for 70% of the industry. %, the output value of biomedicine also accounts for more than 50%. He proposed that Guangzhou Huangpu District, as the main force and main battlefield of Guangzhou IAB industry, aims to achieve a total output value of 800 billion yuan by 2020. “(Huangpu District) has to implement strong industrial projects. At present, there are more than 600 negotiating projects in Huangpu District, and more than 100 contracts have been signed. These projects are mainly IAB projects, and the next step is to promote the roots of IAB projects.” Li Yaoxi said .