The opening of the LCD Integration Plant is said to be a significant milestone in the change of the group's product line and technology upgrade. The new plant is expected to strengthen the group's cost advantages and enhances its competitive differentiation.

Li Dongsheng, the chairman of TCL Multimedia commented that the commencement of production at the LCD Integration Plant and the construction of LCD Industry Park clearly demonstrate the competitiveness of China's domestic TV industry in making flat-panel TVs. He added that in the face of challenges resulting from business restructuring and industry upgrading, Chinese domestic players have to diversify into upstream and mid-stream operations so as to secure a leading position in the sector and to define core competitiveness in the flat-panel market. He concluded that the new LCD integration plant would greatly enhance the group's operating efficiency and overall response to the market demand through its business optimization and synergies while reducing transportation, packaging, and other related costs.

The global demand for LCD TVs is ever increasing. To meet the change in market demand, TCL has accelerated its transition into LCD TV operations and is in the process of diversifying into upstream operation. The total investment in the LCD Integration Plant amounts to CNY600 million. It covers a floor area of 53,700 square meters and a construction area of 110,000 square meters, with eight assembly lines already been in operation. The plant is expected to produce 700,000 LCD TVs in 2009. When it is in full operation, its annual capacity will reach 3 million LCD TVs ranging in size from 15 inches to 55 inches. In addition it will produce 2 million semi-finished large-sized LCD TVs. It is currently one of the largest and most advanced TV assembly plant in China.

The total investment in the TCL LCD Industry Park is CNY2.6 billion. Including the Techne Component Plant, LCD Integration Plant and Home Networking Plant, the industry park will provide production and research and development support to the Group. Upon completion, it will be able to produce more than five million LCD TVs, eight million LCD TV modules, six million units of backlight and LED light source modules and 20 million DVD players annually.

With the newly-developed LCD production facilities commencing operation and conversion of its existing CRT TV production lines, TCL Multimedia now has three LCD TV production bases in China (Huizhou, Wuxi and Chengdu) and two LCD TV production bases in Poland and Mexico.