China's Sichuan Changhong to double '09 LCD TV output

By Argin Chang

TAIPEI, June 2 (Reuters) - China's Sichuan Changhong Electric (600839.SS) said on Tuesday it expects to produce 4.5 million LCD TVs this year, more than doubling from last year's level, as it benefits from China's economic stimulus spending. Sichuan Changhong, one of China's top TV makers and a leading maker of electrical appliances, also said it would buy 2.5 million to 3 million LCD panels, or about $1 billion worth, from Taiwanese display makers, including AU Optronics Corp (2409.TW) and Chi Mei Optoelectronics Corp (3009.TW).

The Chinese company bought less than 1 million liquid crystal displays (LCDs) from Taiwan last year.

"Flat-screen TVs are a trend and they will replace the older TVs," Xu Ming, general manager of Changhong Multimedia Co, in charge of Sichuan Changhong's TV business.

He gave the forecasts at Computex, the world's second-biggest PC trade fair held in Taipei.

Rival TCL Corp (000100.SZ) said on Monday it expects sales to grow to more than 40 billion yuan ($5.9 billion) this year as it targets the country's increasingly rich consumers. [ID:nTP123740]

TCL, Sichuan Changhong and other Chinese TV companies are expected to buy a total $4.4 billion worth of LCDs from Taiwan this year, doubling from a previous target of $2.2 billion, Bai Wei-ming, vice president and secretary general of the China Video Industry Association, said on Tuesday. (Click [ID:nL7729976] for analysis on China's consumer splurge) (Writing by Baker Li, Editing by Jacqueline Wong)