LG Display has announced the opening of its first overseas LCD panel fabrication plant in Guangzhou, China, expanding its presence by adding to its existing module assembly plant in the city.

With plans to mass produce 40-plus-inch large-size LCD panels for TVs at the 8.5G plant, LG Display said it will further enhance its competitiveness in China, the world's largest LCD TV market.

The new 8.5G (2,200mm by 2,500mm) LCD panel plant will be operated by LG Display China, a joint venture between LG Display, the Guangzhou Development District (GDD), and Skyworth, one of the leading China TV vendors and strategic partner to LG Display. LG Display contributed 70% of the US$4 billion investment in the plant on the 330,000m2 site, while GDD and Skyworth contributed 20% and 10%, respectively.

"By operating our first overseas LCD panel plant in China, which has now became the world's biggest TV market, we are going to further strengthen our position in the country," said Sang Beom Han, CEO and president of LG Display.

The LG Display China facility will mainly focus on producing 42-, 49- and 55-inch Ultra HD and Full HD panels, the company said, adding it will produce 60,000 sheets per month based on input glass sheets in the initial stage of operation and achieve full capacity of 120,000 sheets per month by the end of 2016.

The company is expecting improved cost advantages in terms of logistics and lower tariffs by locating in Guangzhou, close to major China TV vendors, including Skyworth, Konka, and TCL, operating in Guangdong Province, the firm added.

Until now, LG Display's overseas production operations have focused on the manufacturing of modules in Nanjing, Guangzhou and Yentai in China as well Wroclaw, Poland and Reynosa, Mexico, added LG.