LG.Philips Displays officially launched its operation in the Peninsula Hotel in Hong Kong July 5, 2001 after LG Electronics and Royal Philips Electronics NV of the Netherlands finalized a joint venture deal to merge their cathode ray tube (CRT) operations.
Each shareholder, LGE and Philips, owns 50 percent of the new company. The position of CEO has been filled by Philippe Combes, former CEO of Philips Display Components. Former President and CEO of the Display Device Co. of LG Electronics Koo Seung-pyeong is the new deputy CEO and chief operating officer (COO).
LG Philips Displays expects to grab a leading position in both the television and monitor tubes markets with a global market share of 26% with production capacity of more than 70 million units. It operates 34 factories worldwide, including 14 display factories and 20 key component factories. The new company will operate independently from its parent companies in management and decision-making.
LGE received $1.1 billion from the new joint venture company for contributing its production facilities, compensating the value gap arose from the joint venture formation.
The two companies are already partners in a successful joint venture for the production of thin film transistor-liquid crystal displays (TFT-LCDs) which has encouraged the latest joint venture.
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