Irico Group postpones 6G TFT-LCD project in Zhangjiagang

Irico Group, one of the largest color picture tube manufacturers in the world, recently postponed plans to build a sixth-generation TFT-LCD project in Zhangjiagang, Jiangsu Province amid the ongoing global financial crisis, sources reported.

Irico Group said it did so because it felt increasing competitive pressure because panel manufacturers both at home and abroad show business losses to some extent in the current economic situation, though an employee of the Zhangjiagang Economic Development Zone, where the TFT-LCD panel project was to be located, claimed that the project suffered from lack of funds.

The CRT manufacturer last year cooperated with Zhangjiagang to plan the 6G TFT-LCD production line, which has already involved RMB 14.6 billion in investment.

An employee of the Zhangjiagang Economic Development Zone on Monday revealed that the municipal government plans to switch from making TFT-LCD panels to upstream businesses such as manufacturing glass substrate, a change of plans that could cost RMB 4 billion.

Wang Guanhe, a representative of Irico, denied rumors that Irico had canceled the 6G TFT-LCD project altogether, emphasizing that the firm is still preparing for the project, but that the project has not yet started construction.

The delay will not affect the business performance of Irico's two listed subsidiaries, IRICO Group Electronics Co Ltd<0438> and Irico Display Devices Co Ltd<600707>, said Wang, explaining that the TFT-LCD panel project is not related to the listed units.