Korea’s leading display manufacturer LG Display said Thursday that it would invest in building a new production line for organic light-emitting diodes for lighting products.

LG Group’s display business arm said the new production line for its fifth-generation OLED panel, a square sheet measuring 100 cm by 120 cm, will boast production capacity that is 30 times higher than an existing line for OLED panels that are 100 cm by 100 cm. 

The new OLED facility, to be built in Gumi, North Gyeongsang Province, will be in full operation by the latter half of 2017. Around 15,000 OLED panels will be churned out from the line, according to the Korean display firm.

Industry watchers estimated that the amount of investments for the new production line will reach up to 200 billion won ($170 million).

“The latest investment decision will help further beef up LGD’s competitiveness in the OLED sector,” said Song Young-kwon, the head of the firm’s strategic marketing division.

Self-illuminating OLED lights, which generate much lower heat and consume less power than conventional lighting products such as bulbs and fluorescent lamps, are expected to see increasing demand in the coming years.

The global OLED lighting sector is anticipated to grow from $135 million in sales this year to 1.6 billion in 2020, according to market research firm UBI research.

By Kim Young-won (wone0102@heraldcorp.com)