Irico Halts Investment in 6G TFT-LCD Panel Plant
China Business News, 7/20/09
An industry source recently revealed that electronics equipment manufacturer Irico Group (0438.HK) has stopped its 6G TFT-LCD display production line in Zhangjiagang City, Jiangsu province, investment into which had already reached RMB 14.6 bln. Irico Group's public relations department confirmed the news, adding that because shareholders of Irico (Zhangjiagang) Flat Panel Display felt current competition in the TFT-LCD industry was too fierce, and pressure on the company's operations was continually increasing, it had become too risky to continue investing in the project. For these reasons, the shareholders decided to suspend TFT-LCD panel development.
In other news, the flatscreen TV assembly plant that Irico Group had quietly established in Zhongshan City, Guangdong province, has been in active production for a month. The plant manufactures 42-inch and 50-inch plasma TVs and 15- to 47-inch LCD TVs. Due to intense competition and low margins in the domestic flatscreen TV industry, all flatscreen TVs produced by Irico Group are sold on an OEM basis for export. As market demand abroad is poor this year, Irico Group's sales target for flatscreen TVs has not yet been confirmed.
Keywords: production facility TV set 0438.HK 6G display export hardware investment Irico Jiangsu OEM plasma TFT-LCD Zhangjiagang flat-screen
Sending
