The zone has signed an agreement with Beijing Dongfang Science and Technology Corp. to build the industrial base in the country's capital city.

The project, divided into three construction phases, will be capable of producing TFT-LCD modules by the end of the first phase of construction at the end of this year. The investment for the first phase project, which is expected to be put into operation by the end of this year, is US$1.2 billion.

As a core technology used in pure-plane display products, TFT-LCD will be used in electrical household appliances, computers, mobile phones and digital cameras, according to experts.

The start-up of the production line will break the existing industrial pattern dominated by Japan and the Republic of Korea and make Beijing Dongfang a competitive producer in the world.

Following ten years of development, the company has formed its product series with display technology at the core. Its principal products enjoy a dominant market share at home and abroad.

The agreement between the two sides marks the beginning of Beijing Dongfang's strategic ascent to the new generation of digital plane-display technology, a source from the company said.

Beijing Dongfang became the only company in China with core TFT-LCD technology when it purchased Hyundai Display Tech co., Ltd. for 380 million US dollars in January 2003, the source added.

(Xinhua News Agency June 12, 2003)