LCD rise causes crash of two LG Philips CRT firms

LG PHILIPS said that LG Philips Display Holding and LG Philips Displays have filed for bankruptcy protection. That is because of worsening conditions in the cathode ray tube (CRT) marketplace and unsustainable debt.

The holding company said it won't be able to fund other loss making subsidiaries because it can't get extra money.

Operations in the US, the Czech Republic, Slovakia, Mexico and France are also "reviewing" their financial position. The firm said the French workers council has been summoned.

"In principle," said the firm, its factories in Brazil, China, Indonesia, Korea and Poland are unaffected. The UK and the Netherlands factories are economically viable, it said. These two factories represent over 85 per cent of LG Philips Display's production capacity, hiring 15,000 people.

The reason is the rise and rise for LCD displays and the decline for CRTs. LCD displays have become more cost competitive faster than anyone expected. "Demand for CRTs has dropped precipitously in mature markets," said LG Philips Display Holding. On the other hand, demand for CRTs is strong in developing countries.

The firm said 350 employees in Eindhoven and 400 employees in Aachen, Germany are affected. The firm had tried to get funding from parent companies and financiers to get additional funding but failed. µ