Joint venture for e-book business
17 June 2010
Jae Woo Lee, CEO of Iriver and Eddie Yeo, LG Display’s Executive Vice President and Head of Mobile/OLED Business
Iriver and LG Display have agreed to establish a joint venture company, L&I Electronic Technology (Dongguan) Ltd. in China to expand their e-book business.
Iriver and LG Display will finance 49% and 51% of the joint venture company, respectively, totalling up to 5 million dollars. The business will be founded on original equipment manufacturing (OEM) and original development manufacturing (ODM) systems to develop e-books and provide production services.
Iriver is responsible for product design, accumulated knowledge on e-book technology, including designs and platform development, as well as technical assistance within the joint venture. And Iriver will be the first customer for the joint venture. LG Display will be in charge of providing a stable supply of e-book displays, such as electronic paper displays (EPD) to the joint venture. Iriver expects to gain a stronger market presence in the domestic and global e-book markets as it will gain a price competitive e-book reader supplier from the new relationship. The prospect for LG Display also seems bright. It will stand out from its competitors by securing a stable distribution line for its e-book displays, while also making its debut in the final product business.
Jae Woo Lee, CEO of Iriver, said: “The joint-venture is significant in that it lays the foundation for a more stable and competitive manufacturing line. If we succeed in generating a synergy between Iriver and LG Display, our joint-venture company will grow to become the market leader with unrivalled competitive power in e-book development and production business.”
LG Display’s Executive Vice President and Head of Mobile/OLED Business Unit Eddie Yeo added: “LG Display decided to establish a joint venture with Iriver to supply customers with more competitive products as part of our upstream-downstream business transformation strategy. LG Display will utilise its advanced EPD technologies to achieve early commercial production of colour and flexible EPD and reach the global number position by 2012.”
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