Changhong, rainbow $300 million made PDP international market hard Fengeng

Domestic color TV industry two "Rainbow" Zibei giant finally joined the Sichuan Changhong and Xianyang rainbow to create Chinese's first independent research and development and production of PDP (plasma display panel) production line. Is expected to invest more than $300 million in the first phase of the project will start in June this year.

Now, the PDP industry is very optimistic about Samsung, Panasonic, LG as the representative of the international giants are ambitious to expand production. Changhong into the color TV industry upstream strategy is necessary, but it seems to be a bit late." Haitong Securities analyst Gu Qing that the current domestic appliances, PDP plasma market is still unable to compete over the liquid crystal, the investment risk is big, is to split the three giants occupied the market, uncertain.

Changhong thought brewing for a long time

Reporters learned from the Xi'an hi tech Zone Investment Promotion Bureau, the current cooperation intentions of Changhong and rainbow has been basically finalized, is now looking for suitable plots of Xi'an hi tech zone. "In June, the first phase of the project will be officially announced." A person in charge of the Bureau said.

According to informed sources, Sichuan Changhong, Xianyang rainbow group and a domestic university, the three parties will jointly create a plasma panel development and production based company. Although the proportion of the new company is unclear, but Changhong plans to invest about $300 million in the first phase, completed and put into operation in 2~3. The production line can produce an annual output of 700 thousand pieces of the latest generation of plasma display, the two phase to reach an annual output of 1 million 600 thousand. Put into operation in the year to increase annual sales of 2 billion 800 million yuan for Changhong, an increase of profit of $750 million.

In fact, the reporter noted that Changhong has entered the minds of PDP brewing for a long time. Reporters learned through the relevant channels of a Changhong electronic information industry investment cooperation forum held in Mianyang in March 2003, the internal information shows that when Changhong launched the PDP project investment plan. The mode of cooperation is "joint venture", with a total investment of about US $400 million. The goal is to develop, design and sell the PDP screen to form a complete industrial chain. According to the design plan, with 42 inches PDP screen calculation, the annual production capacity of up to 1 million 500 thousand. In addition, Changhong and Mianyang's idea is to put the production line in Mianyang. But now, Changhong shake hands Xianyang rainbow, so that the production line eventually settled in Xi'an hi tech zone.

For this investment plan, Sichuan Changhong asset management minister Yang Jun said he just heard that the specific content is not understood. And Changhong spokesman Liu Haizhong is cautious, said the company level is not clear about the investment matters, all to the company announcement shall prevail.

Color TV industry upstream strategic shift

Before the rainbow group in Sichuan has been the largest supplier of Changhong color TV picture tube, this cooperation will undoubtedly make two "Rainbow" kisses. But according to insiders revealed that in fact the rainbow group cooperation is the earliest to Xoceco group, but for various reasons, finally Xoceco CPT group in Taiwan. Therefore, the rainbow only turned to partner with Changhong with Sichuan.

In fact, the color TV industry is now facing a transformation, especially the traditional CRT color TV manufacturers." Gu Qing believes that the rainbow now had to face the present market atrophy of CPT, so eager to carry out industrial restructuring, the best direction is extended to the color TV industry upstream industry chain.

The rainbow and Changhong. At the forum, Changhong chairman Zhao Yong put forward the "three coordinate" industrial development strategy in a small range, which is the most important one is that direction along the industry value chain to build the core technology platform, transfer to the key parts, software, and plasma screens officially included in the industrial restructuring plan, in order to ease the pressure as Changhong technology the machine manufacturer. Therefore, Zhao is still unable to independently develop and produce PDP plasma panel production line, but also the first shot.

Changhong wants to extend in the upper reaches of the color TV is not only PDP, as well as LCD LCD module package (mainly for LCD TV), the project also want to use a joint venture model, with a total investment of 300 million yuan. It is reported that the project is also being discussed.

International market pressure

Changhong is now extended to the upper reaches of the color TV industry chain, after all, can not be hanged in a tree." Gu Qing said, although it plays an important role in the production line of flat-panel TV industry in China to get rid of the core components of heteronomy situation, but due to the current PDP market to be worse than the LCD industry, there is a certain degree of difficulty, so the investment risk is very large.

But according to the relevant data of global authoritative market research firm GFK show that in 2005 China plasma TV sales grew by 157% compared to 2004, although only the flat-panel TV market share of 28%, but sales have reached 42%. According to GFK forecasts, in 2006 the global demand for plasma TV will reach 10 million units in 2010 will be more than 25 million units, with good market prospects. Thus, LCD TV sales growth momentum is Wang let Changhong tempted, the rapid development of plasma, the pain made Changhong screen to achieve two legs.

International giants have long been eyeing this market. It is understood that the current production capacity of Panasonic Shanghai alone more than 1 million / year. In addition, Samsung SDI invested 730 billion won ($751 million 500 thousand), a new plasma panel production line set up in Korea's Ulsan to the annual output of 2007 to reach a total of 3 million to 7 million 320 thousand. LG also quietly plans to increase $600 million investment in 2007, when its production capacity will reach 730 thousand / month.

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