LG Display Co., the world’s second-largest maker of liquid crystal display panels, will likely break ground on a new plant in China before December, an industry source said Wednesday.

The company pushed back an initial plan to start construction of its eighth generation LCD plant in Guangzhou during the first half of this year, as panel prices continued to trend downwards.

Despite the downturn in LCD panels, large-sized panels for TVs in particular, LG Display will not further postpone its plan and could start constructing the new factory as early as the third quarter, the source said.

“We are closely watching the market conditions. We are working with the Chinese government and will start construction within this year, at the latest,” the source said.

The company’s spokesman confirmed that the construction will likely begin within this year, although the decision hinges on the market conditions.

Concerns loom that early operations of a new Chinese plant could further deepen a supply glut that has weighed on display panel prices. 

(Yonhap News)