LG Electronics, a major player in the global flat panel display market, announced on May 18th that it will focus production of plasma display modules on its two most advanced A2 and A3 lines, ceasing production at its older A1 line. This move is to increase operational efficiency and to reduce costs amounting to US$22 to $32 million annually.

By closing the A1 line, LG's 42-inch plasma display module production capacity will be reduced from 430,000 to 360,000 units per month, the discrepancy of which was the A1 line's monthly capacity of 70,000 units. The company's A2 and A3 lines currently produce 120,000 and 240,000 plasma display modules per month respectively, which sum up to 360,000 units per month.

This is a part of LG's ongoing efforts to improve the performance of its plasma display panel business as a whole.