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Changhong Launches Self-Developed PDP Screen

China Business News, 7/08/08

On July 7 at the 2008 China International Consumer Electronics Show (SINOCES), Chinese electronics manufacturer Changhong (600839.SH) revealed the first of its Changhong-900 series high-definition televisions, which are produced with a domestically-manufactured Plasma-Display Panel (PDP). This breaks the effective monopoly on the PDP manufacturing process which is held by multinational companies including Matsushita, Hitachi, Samsung, and LG.

A spokesperson for Changhong revealed that USD 675 mln was invested in the factory in preparation for the production of the new panels. Regular production of 42- and 50-inch units will commence on October 28, after which time the factory will be able to produce 2.16 mln units annually, with expected annual revenues of USD 700 mln. A second round of investment will begin in 2009, and the factory will enter its second stage of production in 2010. A third stage will commence in the fourth quarter of 2009, and is scheduled for completion in 2012, by which time the factory will produce 6-8 mln units per year. The entire project will require a total investment of USD 2 bln, and make the factory one of the four largest in the world.

Keywords: strategy HDTV Matsushita TV set SINOCES production capacity Changhong 900 2008 2009 2010 2012 600839.SH Changhong consumer electronics hardware Hitachi LG PDP Samsung production facility display flat-screen


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