SKorea's Samsung SDI, Samsung Electronics to jointly run PDP operations

SEOUL, Jul 01, 2008 (Thomson Financial via COMTEX) -- SSNJY | Quote | Chart | News | PowerRating -- Samsung Group's two major electronics suppliers have agreed to run their plasma display panel (PDP) operations jointly in a bid to boost synergies in various areas ranging from product development to marketing, Samsung SDI Co. Ltd. said on Tuesday.

Under the agreement, Samsung Electronics Co. Ltd. will take charge of Samsung Group's PDP business without going into full business integration, a business model that has proved to be successful among their rivals.

"Effective today, Samsung Electronics' video display business unit will manage the PDP business for the two companies," Samsung SDI said in a release.

"We believe the co-operation will maximize the synergistic benefits and improve the competitiveness of the PDP business so that Samsung can maintain its world market leadership in the flat TV panel segment," it said.

The two companies expect the move to cut production costs and enhance efficiencies as the functions of production, marketing and planning are combined.

The decision comes after Samsung SDI suffered huge operating losses from running its PDP business due to stiff competition from thin-film transistor liquid crystal display (TFT-LCD) panels.

eunkyung.seo@thomsonreuters.com

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