What They Say
The Aju Business Daily reports that LG Display is raising $1.0 billion to expand its OLED module assembly facilities at its plant in Hai Phong, Vietnam. Despite difficult geopolitical and macroeconomic issues, the firm said that banks such as ANZ Bank, HSBC, Citi Bank, and Spain’s Caixa Bank will extend loans at competitive interest rates based on payment guarantees from the Export-Import Bank of Korea and Korea Trade Insurance Corporation. LG Display said the Korea Eximbank, an official export credit agency, would provide direct loans as well as guarantees.
The expansion is in the small/medium size category (the plant also processes OLED TV panels).
What We Think
We reported last year that the firm had invested $250 million in the facility to take investment to $4.65 billion, so this investment will take the total past $5 billion. The capacity after that investment was to be 13 to 14 million modules per month, so this investment should boost that by a significant degree. (BR)
