LG Display will ramp up its organic light emitting diode (OLED) lighting business a great deal.
LG Display acquired OLED lighting business human resources and patent rights from LG Chem in 2015 and has been producing OLED lighting products, which had been rolled out at LG Chem’s Ochang factory, at its factory in Gumi, North Gyeongsang Province since the end of last year. The Gumi factory produces the world's first fifth-generation (1000mm × 1200㎜) OLED lighting boards. Fifth-generation OLED lighting boards are used after being cut into pieces to fit various sizes of lighting products.
LG Display shut down the Ochang factory which the company had leased from LG Chem, in March of this year, and moved all of the Ochang factoy’s OLED lighting workforce and manufacturing equipment to the Gumi factory.
The Gumi plant is more than 30 times more productive than the second-generation (370㎜ × 470㎜) OLED lighting board factory in Ochang (4,000 sheets per month). LG Display plans to greatly boost production of OLED lighting by securing a production capacity of 15,000 sheets per month by the end of this year. The company said that they were planning to increase sales from 10 billion won last year to 100 billion won by 2020.
LG Display recently took the wrap off its OLED lighting products under the brand name 'Luflex'. The company plans to advance into the global lighting market in the future by marketing them together with lighting equipment makers and automobile electronics companies. In particular, German automakers such as BWM, Mercedes Benz, and Audi are developing technologies to apply OLED lighting to internal and external design and lighting of automobiles. Currently, LG Display is negotiating OLED lighting supply deals with ten overseas automobile manufacturers.
OLED lighting boards had been produced and sold only by LG Display, but Panasonic of Japan and Osram of Europe recently entered the market and are competing with LG Display. The OLED lighting market is expected to grow from US$ 251 million last year to US$ 337 million this year and touch US$ 1.619 billion by 2020, according to market researcher Ubi Research, a market research firm.