SVA, BOE Technology Group and Kunshan Longteng, the three main TFT-LCD manufacturers in China, have agreed to jointly set up a professional company as a unified platform for each of their TFT-LCD services.
The lack of funds and limited scale of each company are the main reasons for the parties to decide to integrate their businesses. At present, SVA produces 90,000 LCD each month, BOE 60,000 and Kunshan Longteng about 30,000. The combination of their business will make them more competitive in the global market.
The new company will be registered in Shanghai and serve as a unified platform for each of the three parties. Right now, the three are working on the organization and strategy development for the new company and expect that they can reach a consensus on relevant business integration before June 30, 2007.