The big four building plot LED production line and for government support

Four China home appliance giant is planning to build a LCD panel production line and for the support of the government. This is one of the efforts made by SKYWORTH and other enterprises to make up for the lack of the upstream industry chain.

Yesterday, SKYWORTH digital Holdings Limited (0751.HK, hereinafter referred to as "SKYWORTH") chairman of the board of directors of Wang Dianfu on the "First Financial Daily" said, because this year the domestic LCD flat-panel TV market in the fierce price war makes the manufacturers profit is getting lower, so recently, Limited by Share Ltd TCL group (000100.SZ, hereinafter referred to as "TCL") Konka Group, Limited by Share Ltd (000016.SZ, hereinafter referred to as "Konka"), Sichuan Changhong electric Limited by Share Ltd (600839.SH, hereinafter referred to as Changhong) and SKYWORTH, the 4 largest domestic color TV enterprises are plotting together into the LCD TV industry upstream industry - LCD panel (TFT-LCD) production areas. Wang Dianfu was held in Guangzhou, Sohu 2005 China home appliances Forum revealed the news.

Four joint investment

Wang Dianfu said, to completely solve the problem of "missing" upstream industry chain, SKYWORTH and TCL, Konka, Changhong and other domestic color TV giants have been in close consultation "joint construction of LCD panel production line" problem. "I and TCL chairman Li Dongsheng, chairman of Changhong, Zhao Yong and others have to communicate several times, we present 4 TV companies have introduced foreign advanced technology of LCD panel production line building ideas, however, a fifth generation LCD panel production line to invest at least 10 billion yuan, a sixth generation LCD panel production line investment Egengda 15 billion ~200 billion yuan, the LCD panel industry in South Korea and Taiwan area, had also rely on the government to vigorously support funds to enter the field of high capital threshold. So, such a large amount of investment, the profit is not only the color TV production enterprises of its own funds is not enough, we hope that the relevant government departments to give funds or bank loans to support 4 enterprises took part, government departments take part, and then some loan from the bank, so as to make up billions of dollars of construction funds."

"The preliminary research work of 4 color TV enterprises are organizing the LCD panel production field, the feasibility report of the joint construction of LCD panel production line soon finished, last month I also to the Vice Minister of information industry Lou Qinjian reported recently, the report will be formally submitted to the relevant departments to the country." Wang Dianfu said with confidence, Beijing BOE and Shanghai SVA, the original construction of LCD panel production line is the local government financing and bank loans, our 4 largest color TV production enterprises, should be able to get support from the government. As for the proportion of each color TV companies and the relevant government departments of investment, equity structure and other issues, it is necessary to report after the formal approval to determine.

Upstream industry chain missing

A person in charge of the multimedia electronic business TCL group headquarters, currently more than 70% of the sales volume of LCD flat-panel TV market in China from the domestic brands, but to occupy 70% core parts: cost of LCD panel is mainly from foreign manufacturers of LCD flat-panel TVs, color TV enterprises due to the lack of upstream core production technology, this year since the domestic flat-panel LCD TV production and sales profit space more and more small price reduction.

At present, 37 Inch LCD flat-panel TVs have a lot of domestic brands to sell $ten thousand, which is certainly losing money earned crying, because the average price of imports of 37 inches LCD panel will be $880." Wang Dianfu said that the problem facing the domestic flat-panel LCD TV industry is "missing" in the upstream industry chain, CRT (CRT) era, in the planning and support of the government, the domestic TV industry gradually established the independent industrial chain, the upstream areas have 7, 8 glass manufacturers CPT (glass display manufacturers) so, the domestic color TV enterprises to get rid of the influence of foreign enterprises, and is committed to the core technology of the product will have to compete with foreign enterprises, even with the channel strategy to win the market. But in the era of LCD flat-panel TVs, currently only the BOE and SVA LCD panel production line, the domestic color TV enterprises of the chain operation of the space is limited, can only rely on the lowest level of the price war to seize the market. The problem of the industrial chain is not solved, Chinese enterprises can only passively beaten, and the widening gap with foreign enterprises."

The State Council Development Research Center, Institute of market economy market Advisory Center Deputy Director Lu Renbo think, driven by LCD flat-panel TV industry rapid growth opportunities in recent years, the traditional home appliance enterprises have invested into the field, resulting in the industry this year staged over the CRT era "than" the price war, not only the industry profits fell to the bottom, but also many enterprises to investment in R & D. The reason is because the LCD panel used in the production of LCD flat-panel TVs are entirely in the upstream of Japan, South Korea and Taiwan and other manufacturing enterprises, the domestic LCD flat-panel TV business has been reduced to the global TV industry chain on the downstream processing and assembly factory". But the survey shows that 67.7% of the city's family intends to buy flat-panel TVs in the next three years, including LCD TV has become the first choice.