LG Display Co., South Korea’s leading panel maker, said on Thursday that it will build a new plant that can produce organic light-emitting diode (OLED) lighting panels in a bid to take the lead in the OLED lighting market that has been growing rapidly as an area of new revenue source.

According to LG Display, it will build a fifth-generation fab in Gumi, North Gyeongsang Province where its other panel lines are already located, with a monthly capacity of 15,000 sheets of 1,000 mm x 1,200 mm substrates for lighting panels that is 30 times larger than its existing ones. With the expanded production, LG Display is expected to increase profitability through economies of scale. The company aims to embark on mass production at the plant in the first half of 2017.

Last year, South Korean conglomerate LG Group decided to make LG Display to take charge of the group’s OLED businesses scattered across different units, transferring LG Chem Ltd.’s OLED lighting panel business to its panel maker. LG Chem had been producing 4,000 sheets of OLED lighting panels a month at its second-generation production line in Ochang, North Chungcheong Province.

Meanwhile, OLED lighting is considered an innovative technology that differs from conventional lighting in that organic materials emit light when voltage is applied to the panel. It is an environmentally-friendly lighting technology that is considered as almost natural lighting as it consumes less power and generates less heat. The technology can also be applied to flexible panels, allowing it to be used in various industry sectors.

LG Display is the only company that is capable of mass producing OLED lighting panels, although some research institutes are in the stage of developing trial products. Industry observers note that LG Display will continue its leading position in the OLED lighting market for a while until others join in.

Demand for OLED lighting panels is anticipated to increase in the future, allowing LG Display to secure a new customer base and create high-added value by providing a total solution for panels including vehicle-use displays.

By Lee Seung-hoon

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