Received a loan of 20 billion yuan from a local bank of China. LGD Guangzhou OLED production line is ready to go.

- Dec 20, 2018-

The injection of 20 billion yuan has added a guarantee for the LGDisplay (LGD) Guangzhou 8.5-generation OLED production line to be put into production as scheduled.

On December 5th, LGD signed a 20 billion RMB Syndicated Loan contract with a loan group jointly established by China Construction Bank, China Bank of Communications, Agricultural Bank of China, and Bank of China. LGD Vice President and CFO Jin Xiangdun and China Construction Bank Guangzhou Branch President participated in the signing.

The syndicated loan will provide financial support for the construction of the LGD Guangzhou OLED production company (LG Display High-Tech Co., Ltd.) and investment procurement equipment. At the same time, the loan group will provide LGD China's Guangzhou OLED production corporation with an eight-year competitive interest rate.

LGD Guangzhou 8.5 generation OLED production line is the only large-size OLED panel production line opened by LGDisplay outside Korea, which will be mainly used for the production of OLED TV panels.

Market research firm IHS expects that by 2020, the demand for OLED TV panels will reach 7 million, and will reach 10 million or more. In order to meet the growing demand of the OLED market, in July this year, LGDisplay established a joint venture legal person in Guangzhou to produce 8.5 generation OLED. The project is jointly invested by LGD and Guangzhou Kaide Technology Development Co., Ltd. in a 7:3 ratio. The total investment scale is about 5 trillion won, and the substrate size is 2200mm*2500mm. It mainly produces 55-77-inch OLED panels for TV. The planned production capacity is 6 10,000 pieces / month, will be mass production in the second half of 2019.

"The success of this signing indicates China's recognition of the future prospects of OLEDs." Jin Xiangdun said, "After obtaining the loan, LGD China's Guangzhou OLED production line is also more prepared, which will help to rapidly upgrade large-size OLEDs. Competitiveness."