UPDATE 1-S.Korea LG Chem to invest 1.2 trln won in LCD glass

(Adds details)

SEOUL, July 17 (Reuters) - South Korea's LG Chem (051910.KS) on Friday said it would invest 1.2 trillion won ($949.9 million) to start production of LCD glass in early 2012, aiming for 2 trillion won in sales by 2018 as a global glass maker.

The country's chemicals and electronic materials maker said in a filing to the Korea Exchange that the 1.2-trillion won investment included an investment announced earlier of 430 billion won in LCD glass production until March 2010.

"We will focus on the LCD glass business as our new growth engine, along with our new electric-car battery business," the company said in a separate statement.

Vice-chairman and CEO Bahnsuk Kim said in the statement: "We will establish stable mass-production systems by combining LCD glass technology from Germany's Schott and our development and technology."

In February, LG Chem, the country's largest chemicals maker, signed a technology import contract with Schott, which owns world-class technologies in precision and special glass sectors.

With the initial 430 billion-won investment, LG Chem will set up the first production line from the second half of this year, adding two more lines to produce more than 17 million square meters of glass per year with the total investment.

LG Chem planned to market the glass to local and overseas markets, including China and Taiwan, the statement said.

LCD glass is a core component in LCD production, accounting for more than 20 percent of costs in LCD production. The world LCD glass market is estimated at 11 trillion won in 2009, and is expected to reach to over 17 trillion won in 2018, along with LCD industry expansion, the LG Chem statement said.

In June, LG Chem said t would invest 1 trillion won in a new electric-car battery plant over the next four years, aiming to derive total revenue of 2 trillion won from its battery business in 2015. [ID:nSEO150729] (Reporting by Cho Meeyoung; Editing by Chris Lewis)