LG Display has invested about 5 trillion won ($4.2 billion) to build the Guangzhou factory for the production of organic light-emitting diode (OLED) sheets for large TVs, the company noted.
"Ahead of the mass production, the Guangzhou factory will begin test runs in July to check the quality of OLED panels," an LG Display official said.
The company said earlier it plans to roll out 60,000 OLED sheets per month at the Guangzhou factory in the initial stage, which would increase its total monthly OLED sheet output capacity to 130,000 units this year when combined with its production line at the company's South Korean factory in Paju, north of Seoul, Yonhap news agency reported on Tuesday.
The global leader in OLED panels has been expanding investment in this category to shift from the traditional liquid crystal display (LCD) panels that have been plagued by falling demand and supply glut, partly from Chinese producers.
LG Display suffered an operating loss of 132 billion won in the first quarter due to low LCD panel prices amid tougher competition from Chinese brands.
The average price of the firm's 50-inch LCD for TVs dropped 23 per cent on-year in the first quarter, according to WitsView, a division of TrendForce.
This year, LG Display has vowed to speed up the transition from LCD to OLED to get a bigger share of the premium TV and smartphone market.
The company shipped 2.9 million units of large OLED panels in 2018, which accounted for over 20 per cent of its total sales, turning to surplus for the first time in five years since the panels' launch. LG Display expected the sales ratio to exceed 30 per cent in 2019.
Market researcher IHS Markit predicted the ratio of OLED TVs will rise from 5.7 per cent of the total market in 2018 to 10.4 per cent in 2023.
( With inputs from IANS )