LG.Philips, Toshiba partner on LCD TVs in Europe

LG.Philips and Toshiba Corp. have formed a strategic alliance to promote their positions in the European LCD TV market, which is emerging as one of the world's largest for LCD TVs.

Under the terms of the agreement, Toshiba will take a 19.9 percent stake in LG.Philips LCD Poland Sp. zo. o, the South Korean party's subsidiary to produce LCD modules in Poland, which is currently under construction in Wroclaw. Toshiba said in a separate statement it will invest approximately $45.8 million in the LG.Philips LCDs Wroclaw subsidiary

In addition to the direct investment, the alliance will allow both companies to work closely together on product development and manufacturing. The companies said they would cooperate closely in developing LCD panels, particularly in fine-tuning image reproduction.

LG.Philips will benefit from establishing better global customer alignment, while Toshiba will benefit from securing long-term, stable procurement of LCD panels at competitive prices and with efficient supply logistics, according to both companies.

"Through this strategic partnership, both LG.Philips LCD and Toshiba will build a strong foundation for growth in the European market," said Koo Bon-Joon, vice chairman and CEO of LG.Philips LCD.

"Our partnership with LG.Philips LCD is an important step toward reinforcing Toshibas presence in the trans-European TV business," said Toshio Yonezawa, corporate senior executive vice president of Toshiba.

Toshiba is also reinforcing its European TV operations with Toshiba Television Central Europe Sp. zo. o. (TTCE), a new LCD TV production and sales company in Kobierzyce, near Wroclaw, in southwest Poland. Toshiba is planning to make 3 million LCD TVs in Europe by 2009 at its two manufacturing sites, TTCE and Toshiba Information Systems Ltd in the United Kingdom. The plan will be bolstered by the investment in the LG.Philips LCDs Wroclaw module plant, Toshiba said.

- John Walko
EE Times Europe