14 DAY TRIAL // 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 on July 18 at the main office of Chungcheongnam-do.
During the signing ceremony, the officials present - Chungcheongnam-do Provincial Governor Lee Wan Koo, Asan city Mayor Kang Hee-bok, S-LCD CEO Chang Wonkie, and CFO Hitomi Masatoshi - have announced the details regarding the MOA, a memorandum which refers to the new investment by S-LCD and infrastructure support by the local government.
"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," stated a provincial government official during the ceremony.
Consequently, according to the agreement, S-LCD will invest a total of $1.9 billion ($950 million in foreign investment) by the end of 2007 to build 8th generation LCD Production Line, which it will be located near to Line 7 in the Tangjeong "Crystal Valley".
"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", said the company.