S-LCD and Korea’s Chungcheongnam-do agreed to foster World’s Largest LCD Clusters in Tangjeong

(Auszug aus der Pressemitteilung)

Tangjeong, Korea – July 18, 2006 – On July 18, S-LCD, a joint venture between Samsung Electronics and Sony, signed a memorandum of agreement (MOA) on foreign investment with Korea’s Chungcheongnam-do, one of the 8 provinces in Korea. The MOA signing took place at the main office of Chungcheongnam-do in the morning.

In the signing ceremony, Chungcheongnam-do Provincial Governor Lee Wan Koo,, Asan city Mayor Kang Hee-bok, S-LCD CEO Chang Wonkie, and CFO Hitomi Masatoshi jointly announced the details of MOA, which covers new investment by S-LCD and infrastructure support by the local government.

According to the contract, S-LCD has agreed to invest a total of US$1.9 billion (US$950 million in foreign investment) by the end of 2007 to build 8th generation LCD Production Line. It will be located on the site next to Line 7 in the Tangjeong “Crystal Valley”. Chungcheongnam-do and Asan City have agreed to designate the location where S-LCD is making the new investment as a “foreign investment zone.” The local governments have also promised to support the project with various incentives.

The new investment will contribute to the development of Display business in Korea, also one of the four “strategic industries” being pursued by Chungcheongnam-do. With the investment, Chungcheongnam-do is expected to create new jobs for more than 1,000 people in the region, generating yearly sales of KRW2.2 trillion by 2008.

Meanwhile, Chungcheongnam-do and Asan City aim to develop Tangjeong “Crystal Valley” into the world’s largest LCD cluster. Complexes for subcontracted suppliers are being established in the area. A new four-lane access road is being built between the Tangjeong Complex and Asan City, and an eight-lane highway is being constructed between the Cheonan-Asan area and Hyeongchoong Temple. The local governments are also building 3,700 new apartment units, expanding the availability of industrial water, and building environmental protection facilities.

Various steps will be made to improve the local educational environment. Financial support will be provided to establish the new Chungcheongnam-do Foreign Language High School. Efforts will be also made to attract a science high school to the area. The local governments also pledged to take steps to make the Crystal Valley Conference a world-class international event that can bolster the competitiveness of Korea’s display industry.

A provincial government official says, “In the future, Tangjeong Crystal Valley will embrace facilities for manufacturing, education, and environment-friendly living. We will apply the latest technologies and methodologies to create an urban environment with ubiquitous online access. Our goal is to make the world’s most advanced LCD cluster that can generate new wealth for the Republic of Korea in the 21st century.”

He added: “The overall Tangjeong Crystal Valley complex is scheduled for completion in 2015. At that time, annual output will be worth $30 billion, with exports of US$24 billion a year and jobs for 50,000 workers. The complex will generate KRW860 billion in national taxes and KRW150 billion in local tax revenue. These projects are the result of a June 29 meeting between Governor-elect Lee Wan-gu and Samsung Electronics Vice Chairman Yun Jong-yong. They will be aggressively pursued in the future.”