Samsung Plans New Panel JV In Suzhou
Samsung Electronics, the world's largest LCD panel manufacturer by revenue, has announced that it will invest about USD500 million to build a new joint venture in Suzhou for the production of 7.5-generation panels.
The new JV, Suzhou Samsung Electronic LCD Company Ltd., will be 50% owned by Samsung. For the remaining stake, Suzhou Industrial Park will hold a 30% stake; Chinese home appliances maker TCL Group will hold a 10% stake; and Samsung's associated party in China will hold a 10% stake.
Before the joining of TCL Group, Samsung intended to invest about USD856 million to gain a 80% in the JV, and Samsung China and Suzhou Industrial Park hold a 10% stake, respectively. However, Samsung decided to invite TCL Group to enhance its competitiveness in China. Moreover, the South Korean company increased the equity of Suzhou Industrial Park to strengthen their business relationship.
According to Samsung, the new 7.5-generation panel plan will start construction in May 2011 at the earliest, and it is expected to put into production in 2013.
