Toshiba buys into HDTV screens

Toshiba and LG Philips LCD have created an alliance to storm the European LCD high-definition TV (HDTV) market next year.

Toshiba has paid around £25m for a 19.9 per cent stake in LG Philips' new LCD production plant, which is under construction in Wroclaw, Poland.

Both companies will also work on product development and manufacturing. The new plant will come online in late 2007 and Toshiba is hoping to be producing three million panels between the new plant and an existing production facility in the UK by 2009.

The deal is important for Toshiba as it will secure "steady supply" of competitively priced panels to boost its strong position in the European HDTV market. Neither company would reveal just how many panels Toshiba will be getting from the new operation.

"Our partnership with LG.Philips LCD is an important step toward reinforcing Toshiba's presence in the trans-European TV business," stated Toshio Yonezawa, Toshiba's corporate senior executive VP.

"LG Philips LCD is a leading supplier in the global market for LCD panels and we will leverage this relationship to build an advantageous position in Europe and to provide high-quality and competitive products to the market."