BOE to produce LCD panels with Chengdu partners

BOE Technology Co. Ltd <000725>, a leading hi-tech company in producing laptops, desktops, cameras and LCD panels, will jointly invest RMB 3 billion to build a 4.5G LCD panel producing line in Chengdu, as announced by the company in a statement on Wednesday.

BOE, Chengdu Hi-Tech Investment Group Co and Chengdu Industrial Investment Corp will co-fund the 4.5G LCD project, which will manufacture LCD panels below 14.1 inches, used in laptops, automobile electronics and portable multimedia players.

The new plant has a registered capital of RMB 30 million, of which BOE, Chengdu Hi-Tech and Chengdu Industrial has18.18%, 50% and 31.82% stakes respectively.

With a current focus on producing 5G LCD panels of 17-inch LCD monitors and TV, BOE has reported huge losses due to stiff competition from LCD manufacturing giants, such as Sharp and Samsung. Insiders related that the new move will help BOE to avoid duplicated investments in the risky domestic LCD panel industry.

Shares of BOE fell by 2.07% to RMB11.31 per share. However, it is a 40% rise from Sep 1, when the company first announced it plans to invest in 4.5G LCD.