UPDATE 1-LG Display considers investment to boost plastic OLED production

Wed Jun 25, 2014 9:47pm EDT

* LG Display CEO says to consider plastic OLED investment in H2

* Plastic OLED displays used for smartphones, smartwatches (Adds details, comment from analyst)

SEOUL, June 26 (Reuters) - LG Display Co said on Thursday it is considering making investments to boost production of plastic OLED displays ahead of an expected surge in demand for wearable devices and smartphones.

"We will consider during the second half of this year whether to invest to add an additional production line (for the screens)," LG Display quoted Chief Executive Han Sang-beom as saying at a meeting with reporters on Wednesday.

He did not comment on how much the company would invest.

Adoption of plastic OLED displays for mobile devices is expected to pick up in part because they are lightweight and can be curved to accommodate new forms of smartphones and smartwatches.

While LG Display already supplies plastic OLED displays to LG Electronics Inc, for the LG Group affiliate's curved-display G Flex smartphone, the company said it would need to expand production capacity to meet growing demand for new handsets and wearable devices.

"(LG Display) will likely make additional investments based on the change in the key specifications for mobile devices," Hana Daetoo Securities analyst Nam Dae-jong said.

A source told Reuters last month that the South Korean firm is the exclusive supplier of screens for the initial batch production of Apple Inc's first smartwatch, the face of which will protrude slightly from the band and have an arched shape. LG Display declined to comment on the matter.

(Reporting by Se Young Lee; Editing by Stephen Coates)

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article