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LG.Philips LCD Began Mass Production at Its Poland Module Plant in 2007

LG.Philips LCD’s Poland plant began mass-producing TV and monitor modules in March 2007. Here are the timeline, announced investment and capacity targets.

By TheFinanceBase Team 3 min read
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LG.Philips LCD said full-scale mass production began on March 30, 2007, at its LCD module plant in Kobierzyce, near Wroclaw in southwestern Poland. The facility assembled modules for televisions and monitors; it was not described as a factory that fabricated LCD panels from glass substrates. The company’s production-start announcement followed an investment plan in 2005 and a groundbreaking in 2006—three distinct milestones.

When did the Poland plant start production?

LG.Philips LCD announced on April 1, 2007, that full-scale mass production at the plant had begun on March 30. A company annual report filed with the U.S. Securities and Exchange Commission also records that the Polish plant commenced mass production in March 2007.

Date Milestone
August 2005 LG.Philips LCD said it was considering a module factory in Eastern Europe and had not selected a final location. (company announcement)
September 7, 2005 The company announced a plan for a plant near Wroclaw, with investment and capacity targets. (company announcement)
September 9, 2005 LG.Philips LCD said it had signed an investment agreement with the Polish government and Wroclaw municipality. (company announcement)
June 15, 2006 The company announced the groundbreaking and said mass production was planned for March 2007. (company announcement)
March 30, 2007 Production began, according to the company’s announcement two days later. (company announcement)
April 1, 2007 LG.Philips LCD publicly announced the start of full-scale mass production. (company announcement)

Where was the facility, and what did it make?

The plant was in Kobierzyce, near Wroclaw in southwestern Poland. Its role was back-end module assembly: LG.Philips LCD said it would produce large TFT-LCD modules for televisions and modules for monitors.

The company’s 2005 plan named television modules in 26-, 32-, 37- and 42-inch sizes, and monitor modules of 19 inches and above. The 2007 production-start announcement emphasized modules mainly for LCD televisions with screens of 32 inches and larger.

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This distinction matters: LG.Philips LCD described panel production as taking place in Korea and module production and assembly as being located closer to customers. The Poland facility was presented as an assembly plant, not as a front-end TFT-LCD panel fabrication site.

What investment and capacity did LG.Philips LCD announce?

In 2005, LG.Philips LCD announced a total planned investment of EUR 429 million by 2011. The figure was a forward-looking company plan, not a confirmed final-spending total.

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Measure Announced figure What the figure represented
Initial annual capacity 3 million modules The company’s stated initial capacity in announcements from 2005 to 2007. Its annual report described this as the initial capacity expected by the end of 2007.
Planned capacity by 2011 11 million modules per year A planned expansion or design-capacity target stated by the company; the cited material does not establish that the target was reached.
Planned investment by 2011 EUR 429 million The company’s announced investment plan, not independently confirmed final spending.

Why did the company choose Poland?

LG.Philips LCD said that assembling modules in Europe would place products and technical support nearer to customers and reduce distribution costs. Executive vice president of worldwide sales Duke Koo described the plant as part of the company’s strategy for the European LCD TV market, citing timely supply and swift technical support as expected benefits. These were the company’s stated reasons for the investment, not independent measurements of costs saved or service improvements achieved.

The company’s April 2007 release also cited a DisplaySearch report released in March 2007, which it said put Europe at 39.3% of worldwide LCD TV demand by units in 2006. That percentage is the company’s account of the DisplaySearch report, rather than a figure verified here against the original report.

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What is known about the plant today?

The available historical announcements and filing establish the investment plan, the facility’s intended role and the 2007 production start. They do not establish whether the factory currently operates, who owns it now or what it produces today.

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