Shenzhen Julong Opto-electronics, China's first LCD panel maker invested by TV manufacturers, will build a facility in Shenzhen, Guangdong Province by the end of this year, Shanghai Daily learned yesterday.

The plant, which costs 2.3 billion U.S. dollars, will manufacture sixth generation LCD (liquid crystal display) panels. It is scheduled to start production at the end of 2008 with the monthly production capacity of 90,000 units, said a Julong official surnamed Li, who did not give his full name.

"The investors are talking about capital and the share structure hasn't been decided yet," Li said in a phone interview yesterday.

The company's registered capital will reach 1.2 billion yuan (150 million dollars) soon from 20 million yuan now, Li added.

The Julong plant is co-invested by four TV giants - TCL Corp, Skyworth Group Co, Konka Group and Chonghong Electric Co - as well as the Shenzhen government and BOE Technologies, China's biggest LCD panel maker. They share funding and output.

BOE, the technology provider, holds the majority of the company with a 40 percent stake, according to an earlier media report.

"It is a necessary step for Chinese TV makers, otherwise they have to highly depend on overseas LCD makers such as Samsung, LG Philips and Sharp," said Zhang Bing, an analyst at Display Search, a US-based research firm.

LCD TV has become popular in China as consumers and retailers are interested in "new technology TV" and the Beijing Olympics 2008 will encourage new TV buying as well as replacement LCD TVs, according to iSuppli Corp, a US-based consulting firm.

Shanghai-based SVA Group also plans to build two advanced LCD panel lines in the city based on 6th or above technology by 2010.

The next-generation lines allow makers to produce bigger sized LCD panels economically, industry insiders said.

Editor: Yan