LG Display has secured funds from Chinese banks to establish LG Display High-Tech, an OLED production joint venture, in Guangzhou, China.

On Dec. 5, the company has signed a syndicated loan agreement worth 20 billion yuan (3.2 trillion won) with China Construction Bank, the Bank of Communication, the Agricultural Bank of China and the Bank of China. The loan will be offered by a group of financial institutions to LG Display High-Tech in Guangzhou on a common basis. The funds will be injected in the new OLED plant.

The demand for OLED TVs pushed LG Display to establish a joint venture for the production of 8.5-generation OLEDs in Guangzhou, China last July. LG Display and Guangzhou Development Zone invested in the joint venture 70:30. The total investment is about 5 trillion won (US$4.5 billion), including 2.6 trillion won (US$2.3 billion) in capital. The company is currently constructing a 8.5-generation (2,200 x 2,500) OLED production plant and is expected to start mass producing in the second half of 2019.

In related news, LG Display said Friday it is working with Japan’s national public broadcasting company NHK to broadcast the 2020 Tokyo Olympics with 8K picture quality.

To promote OLED panels in Japan, the company participated in the 28th Finetech Japan forum held in Tokyo on Thursday.

In Japan, OLED TVs account for 69 percent of the market for high-end TVs over $2,000. Japanese companies like Sony, Panasonic, Toshiba and Funai are listed among LG Display's 15 OLED panel customers.