Changhong shows to the world that the first plasma panel production line in China has been started to construct2007-07-19
Along with the starting of construction of the first Chinese plasma panel production line in China’s science and technology city Mianyang, there is one more expectation for prospect of China household appliance industry.
The Grand Opening of COC’s PDP Project & CHANGHONG-TECO’s AC Compressor Project was held ceremoniously in Economy and Technology Development Zone in Mianyang, Sichuan on 28 Apr. 2007. Leaders from Ministry of Information Industry and The Ministry of Science and Technology, ambassador Bak Sang Eun of Ministry of Foreign Affairs and Trade of Republic of Korea, consul general Bak Tong Seon of Consulate General of Republic of Korea in Chengdu, provincial Party committee secretary of Sichuan Province Du Qinglin and governor Jiang Jufeng attended the ceremony. The ceremony was hold by deputy secretary Gan Daoming of the provincial Party committee of Sichuan Province. Secretary Du Qinglin declared that COC’s PDP Project & CHANGHONG-TECO’s AC Compressor Project was started. This is the biggest innovation project started ever since the construction of “Innovative Changhong” by Ministry of Information Industry and Sichuan province at the end of last year.
In the ceremony, Director General Mo Wei from Comprehensive Planning Department of Ministry of Information Industry read out “The Official Reply from The National Development and Reform Commission on Approval of Production Project of PDP display panels and modules of Sichuan COC Display Devices Co., Ltd. (Under construction)”. Secretary Du Qinglin granted title of Sichuan COC Display Devices Co., Ltd and governor Jiang Jufeng granted title of CHANGHONG-TECO’s AC Compressor Project. President Zhao Yong of Changhong leaded the project team to swear, determining to realize strategic transformation in Chinese household appliance industry and improve the global competitiveness of Chinese household appliance through independent innovation.
Fierce competition, unprecedented prosperity
President Xing Daoqin of IRICO (cooperator in COC PDP project), representative of American MP, and director Sun Yanmei of TECO (cooperator in compressor project) also attended the ceremony. Deputy secretary general Hao yabin of China Video Industry Association (CVIA), vice-president Shi Wanwen of TCL, vice-president He Jianjun of KONKA, director of board of directors and vice president of TV Business Cadre of Skyworth Liu Tangzhi, assistant to the general manager Liu Weidong of Hisense, Minister of PDP Division of AGC, vice-president Liao Qingfeng of Microsoft in Great China, and representatives from Samsung, Panasonic, LG, Hitachi, TI, GE, Mitsubishi, Carrier and Sanyo Semiconductor and so on was invited to attend the ceremony.
Ambassador Bak Sang Eun of Ministry of Foreign Affairs and Trade of Republic of Korea pointed out that the strategy cooperations between China and Korean in different fields were deepen continuously and the cooperation between ORION PDP and Changhong would certainly further deepen the cooperation between China and Korean in electronic information industry field.
Governor Jiang Jufeng expressed, “Changhong is one of the leading enterprises of Sichuan “Strong Province in Industry”. COC PDP project and CHANGHONG-TECO’s AC Compressor Project will accelerate the implementation of Sichuan “Strong Province in Industry” strategy and promote development of economy and society in Sichuan Province or even in western region. With the forming of Chinese PDP industrial group leaded by Changhong, Sichuan electronic industry level will obtain quiet great progress and will finally transfer to a strong driving force for “Strong Province in Industry””.
President Xing Daoqin of IRICO thought “The household appliance industry of China faces industrial upgrade and transformation and COC PDP project is a strategic selection, which will quicken up the process of Chinese household appliance industry getting rid of low level competition”. Director Sun Yanmei of TECO expressed “Household appliance is one of the important directions for TECO to develop strategically. The strategic cooperation with Changhong in compressor will explore a new mode for close cooperation and operation between up and down stream household appliance industrial chain. Changhong and TECO will accelerate technical development in new refrigerant and frequency conversion and try to win social value and economic value under environment and energy and ecosystem and human settlement.
The future is worthy of expectation
It is known that the total investment for the first stage of COC PDP project will be USD 675 million, and production is planned to be started in July 2008, having annual production capacity of 2.16 million pieces of PDP modules (calculated as 42″). COC will complete construction of more than USD 2 billion total investment and being with annual 6 million pieces of capacity in PDP display module in three stages, to advance to the top four in world PDP industry. CHANGHONG-TECO AC compressor production line is invested by Sichuan Changhong Electronic Co., Ltd. and TECO Electric and Machinery Co., Ltd. together (Sichuan Changhong Teco Precision Equipment Co., Ltd is invested with 75% by Changhong and 25% by TECO). The total investment for the first stage of this project is planned to be RMB 400 million and the total capacity will reach 5 million. The investment for the first phase will be RMB 152 million and volume production will be started at December 2007, having annual capacity of 2.8 million.
In April 13, Changhong had obtained “The Official Reply from The National Development and Reform Commission on Approval of Production Project of PDP display panels and modules of Sichuan COC Display Devices Co., Ltd. (Under construction)”, which had marked the first plasma production line in China turning into substantive construction, and the various imaginations on the first PDP project in China from all social sectors had settled. President Zhao Yong of Changhong thought high technology industry and low added value had become a big challenge for the industry and Chinese household appliance enterprises must transfer and extend to upstream industrial chain.
“The start of COC PDP project marks the cementing and improvement of Changhong in core technology of key parts and components. This is another important action in Changhong’s ‘Three Coordinates Strategy’. Changhong’s industrial structure and increasing mode are optimized further.” Some industrial economy analyzers though, “COC PDP project will complete the household appliance industrial chain of China, regulate the structure of electronic information industry of China and improve global competitiveness of Chinese household appliances.” In 2004, Changhong had established “Three Coordinates Strategy” for industrial development, extending to key parts and components and software in direction of industrial value chain. PDP panel and compressor are two key parts. In order to ensure the continuous development and create high added value industrial platform, COC PDP project also plan technology upgrade and continuous cost reducing solution for a long time in the future in detail.
Some important scientific research institutes and industrial enterprises in domestic have already taken part in the construction of supporting industrial chain for the project. Changhong has in fact become the integrator of PDP industrial resources. According to the strategic route map of COC PDP project, volume production will be realized on basis of technology brought in and absorption and leading by PDP module, domestic and foreign scientific research and industrial resources will be integrated and scientific research and industrial supporting platform will be constructed on basis of volume production. And under the support of government, “China PDP Industrial Group” will be constructed, creating highland for China PDP industry.
“As a large investment project in Sichuan province, COC PDP project and compressor project will promote development of Sichuan electronic information industry which is likely to become an important part in China electronic information industry.” Regional economy research experts emphasized, “China science and technology city Mianyang will experience this effect directly. Large quantities of industrial supporting resources enter and the economic strength and development environment of Mianyang will meet a qualitative leap. China science and technology city will own a new card – plasma panel. While for the wide western area, the two projects have immense radiation effect on integration of industrial resources, enhancement of industrial effectiveness and improvement of business and travel environment.” Remarkably, CHANGHONG-TECO joint venture corporation is the first compressor production enterprise in western area.
In digital TV times, digital and plat panel wave come turbulently. Flat panel display devices industrialization becomes a strategic block. In 2007, Ministry of Information Industry determined flat panel development strategy of 2007: “China will organize and implement ‘Special Project for Flat Panel Display Devices Industrialization’, in which the 42″ and above plasma display panel will be development on focus.” “Flat panel will become the mainstream in future market. For PDP only, there will be more than 30 million demand in the world in 2010. This is well proved by capacity enhancement of transnational magnates.” Market experts pointed out, “PDP industry itself is a global competitive industry. Therefore, COC PDP project will encounter global competition. However, the current PDP market is monopolized by oligarch and its scale is limited. It is in high speed growth period. For PDP enterprises, cooperation is more important than competition. Chinese enterprises represented by Changhong will play important parts.”
“China involves in the world. Enterprises also involves in the world. In economy globalization times, enterprise development shall stick closely to national strategy. Independent innovation, industrial structure regulation and increase mode change are all carried out in COC PDP project.” Economy and society development strategy research experts thought, “COC PDP project support the backbone of national industry. An important step in strategic transformation of Chinese household appliances has been made.”
