TV giant tunes in to Polish potential

Korean LG Philips Liquid Crystal Displays has revealed plans for a series of major investments in the country over the next seven years. Initially they will build a factory producing liquid crystal screens in Kobierzyce, near Wrocław.

It is estimated that the value of this investment will amount to around EUR 429 (zł.1,684) million and that production will be launched in the first half of 2007. The  whole factory will be completed by 2011 when its production capacity will total 11 million units-a-year.

"Our aim is to win a leading position on the fast developing European market of LCD TV sets," stated Duke Koo, the concern's deputy president for global sales. With this aim LG Philips LCD will construct six more factories in the vicinity of Kobierzyce to provide components.

Moreover, LG Electronics, which owns a 44.57-percent stake in LG Philips LCD, has declared its interest in further investments in Poland. The company, which is currently constructing a plasma TV production line near Mława, wants to build a EUR 96 (zł.377) million white goods factory near Kobierzyce that will provide more than 3,200 new jobs.

As a result of the new developments, an industrial cluster will come into existence around Kobierzyce specializing in the production of state-of-the-art electronic equipment.

"In total up to 12,000 new jobs are expected to be created near Kobierzyce," stated the Economy Minister, Jacek Piechota. Apart from special tax reliefs and other incentives, between 2006 and 2011 the Korean investor will receive financial assistance from the Polish government in the form of a grant worth zł.100 million. The overall value of government aid is to exceed zł.336 million.

By 2012, LG Philips' contributions to the economy are expected to reach zł.1,256 million.