LG Display Plans $4B China LCD Venture; Sees Glut Ahead

LG Display (LPL) said it will sell up a $4 billion joint venture with China’s Guangzhou Development District to build LCD panels, Reuters reports. Plans for the venture were first announced in August, but no details had been previously provided on the proposed facility, which is supposed to start mass production in 2012.

Meanwhile, Dow Jones Newswires reports that the company believes the LCD sector is likely to be over-supplied by the end of this year and into next year. This is despite the fact that LG Display said it now sees TV panel shipments this year of 170 million to 175 million, up from a previous forecast of 120 million, due largely to strong demand in China.

LPL today is up 54 cents, or 3.8%, to $14.60.