SVA NEC $200 million to build two private LCD panel line

Shanghai reports

Next, we want to build two production lines, is the six generation or the seven generation has not yet been determined." The afternoon of November 8th, Shanghai SVA (Group) Limited company president, Shanghai SVA NEC liquid crystal display Co. Ltd. (hereinafter referred to as SVA NEC) chairman Gu Peizhu told reporters. SVA NEC has Chinese only two five generation LCD panel production line one, and now the company will build two more advanced production line in five years, the global LCD panel among the second echelon.

SVA NEC general manager Zhou Jiachun told reporters that the first production line has begun to profit, "September profit 35 million 230 thousand yuan, October $9 million depreciation after profit 22 million 700 thousand yuan." While another domestic LCD panel maker BOE (00725), 1-9 month appeared a huge loss of $1 billion 367 million.

In an interview with reporters in the morning, the Shanghai municipal government officials visited the SVA NEC, announced the above NEC broadcasting center set flat panel display industry base in Shanghai. It is understood that in the planning of Shanghai flat panel display industry base is located in Minhang Xhenzhuang Industrial Zone, where this is the SVA NEC, covering an area of 2.2 square kilometers, the total investment will reach $6 billion.

In this $6 billion investment, the investment of the three LCD panel production line will account for 50%-60% of the share, the upstream supporting industries will account for 20%-30%, the rest of the downstream cost of corporate investment.

According to the plan, SVA, Shanghai Guangdian Electronic Co Ltd shareholders SVA NEC investment will be mainly responsible for the middle products LCD panel products and take part in the upstream enterprises; Affiliate Electronics (600602) will participate in the upstream holding joint venture investment, and other investment products, plasma OLED; another related company information (600637) manufacturing and marketing will be in charge of downstream products.

"We hope the industry base will attract $2 billion 500 million in foreign investment." Gu Peizhu told reporters. The news that Zhou Jiachun has worked with the LCD panel plant AU Optronics, color filter manufacturers South Xin, integrated circuit manufacturers Winbond electrical contacts were made. In July this year, AU Optronics chairman Li Kunyao also led some executives to SVA NEC conducted study.

"We are asking Deutsche Bank to make a private placement of about $200 million to $-2.5." In Gu Peizhu's view, how to raise funds for the new two production lines will be a huge challenge.

Previously, the major shareholder of SVA Group SAIC Group and Shanghai SASAC has an increase of 1 billion 200 million yuan up.