China's top appliance maker TCL Saturday started building a 8.5-generation LCD production line in the southern city of Shenzhen to meet the rising demand for flat-screen TVs.
The plant, in which TCL and Shenchao Technology Investment Company each hold a 50 percent stake, involves an investment of 24.5 billion yuan ($3.6 billion). It covers an area of 600,000 sq m.
The fund includes 10 billion yuan from TCL and Shenchao, bank loans and also investment from domestic TV makers and overseas LCD panel producers, the two investors said.
The plant has a full capacity of 14 million LCD panels per year with an estimated output value of 16.9 billion yuan ($2.48 billion).
Its initial phase is expected to be put into operation in August 2010 and start mass production at the end of 2011. The second phase will start mass production one year later.
TCL, founded in 1981, sold 14.28 million color TVs globally last year. Shenchao Investment, owned by the Shenzhen government, runs businesses including investment in projects related to integrated circuits and flat screens.