Chinese television maker Konka has announced plans to invest CNY886 million to build a LCD module plant in Kunshan, Jiangsu province.
The new module plant, which is said to be China's largest of its kind, will have eight liquid crystal module production lines, of which, four are pure LCM production lines and four are LCM and TV integrative production lines. On the completion of the plant, it will have an annual capacity of 7.2 million units of LCM liquid crystal display module and 3.6 million LCD TVs.
Hou Songrong, chairman and CEO of Konka, says at present, Chinese home appliances makers have accumulated certain advantages in sales network, application technology innovation and cost control. As the new LCD module plant is put into production, Konka will be able to save costs by implementing integrative design and reducing packing and transportation links, increase Konka's control over the flat panel TV industry chain from the current 30% to between 50% and 60%, and reinforce the company's profitability.
Chen Yuehua, president of Konka, says that the Kunshan plant will be a comprehensive base that combines module development, module production with complete appliance production. The company plans to realize self-development of backlit components and drive circuit in two to three years.