LG Display, Korea’s display manufacturing giant, said Thursday that it has expanded partnerships with its five suppliers to further share profit and technical know-how in line with the country’s move to promote shared growth.
The five subcontractors LG Display has sought to boost benefit-sharing with are Exax, a chemical and electronics materials maker; Heesung Metal, a metal and materials company; Glonix, a display glass materials maker; Dong Yang Industrial, a plastic materials maker; and Oh Sung Display, a display components maker.
This move comes after LG Display joined a group of conglomerates in November last year when they agreed with Korea’s Ministry of Knowledge Economy to pursue benefit sharing with their respective small and medium-size subcontractors for mutual growth.
LG Display’s shared growth initiatives also include collaborating with its five suppliers to develop proprietary components and technologies, improve product quality and increase productivity and efficiency.
Such concerted efforts would help the companies to lower manufacturing costs, it noted.
For instance, LG Display plans to domestically develop components with Exax as part of efforts to boost price competitiveness.
Depending on the result of their partnerships in benefit sharing, LG Display could seek to increase orders, sign long-term contracts, share patents or transfer technologies.
The company hopes that benefit-sharing would provide a foothold for both LG Display and its five partners to further collaborate and grow, said Jung Cheol-dong, chief production officer of LG Display.
Also in line with efforts to boost corporate social responsibility, Korea’s second-largest display panel maker has launched a scholarship program for children of police officers and firefighters who died in the line of duty.
LG Display is 37.9 percent owned by LG Electronics, the world’s second-largest LCD TV maker. LG Electronics had a global market share of 13 percent in the first quarter of this year, following Samsung Electronics’ 17.5 percent, according to analysts.
By Park Hyong-ki (email@example.com