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Samsung-Sony JV invests $1.9B in SK province

Posted: 20 Jul 2006 ?? ?Print Version ?Bookmark and Share

Keywords:S-LCD? memorandum of agreement? Chungcheongnam-do? investment? LCD production?

S-LCD, the joint venture between Samsung Electronics and Sony, signed a memorandum of agreement with Korea's Chungcheongnam-do, one of the eight provinces in Korea. The signing took place at the main office of Chungcheongnam-do.

In the signing ceremony, Chungcheongnam-do provincial governor Lee Wan Koo, Asan city mayor Kang Hee-bok, S-LCD CEO Chang Wonkie and CFO Hitomi Masatoshi jointly announced the details of the agreement, which covers new investment by S-LCD and infrastructure support by the local government.

According to the contract, S-LCD has agreed to invest a total of $1.9 billion ($950 million in foreign investment) by the end of 2007 to build an eighth generation LCD production line. It will be located on the site next to Line 7 in the Tangjeong Crystal Valley. Chungcheongnam-do and Asan City have agreed to designate the location where S-LCD is making the new investment as a foreign investment zone. The local governments have also promised to support the project with various incentives.

The new investment is expected to contribute to the development of the display trade in Korea, one of the four strategic industries being pursued by Chungcheongnam-do. With the investment, the province is expected to create new jobs for more than 1,000 people in the region, generating yearly sales of $2.3 billion by 2008.

A provincial government official says, "In the future, Tangjeong Crystal Valley will embrace facilities for manufacturing, education, and environment-friendly living. We will apply the latest technologies and methodologies to create an urban environment with ubiquitous online access. Our goal is to make the world's most advanced LCD cluster that can generate new wealth for the Republic of Korea in the 21st century."

According to a provincial government official, the entire Tangjeong Crystal Valley complex is scheduled for completion in 2015. By that time, annual output will be worth $30 billion, with exports of $24 billion a year and jobs for 50,000 workers. The complex will generate $901.86 billion in national taxes and $157.30 billion in local tax revenue.

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