$7 bn Videocon plant in Poland

Vinod Dhoot’s Videocon Industries is poised to invest up to 20 billion zlotys (5.3 billion euros or $7.1 billion) in a liquid crystal display (LCD) plant in Poland, according to a report in Wall Street Journal.

The company would start negotiations with the Polish authorities “in coming days”, said the Polish edition of the newspaper.

Videocon already owns a classic television plant in Piaseczno, on the southern outskirts of Warsaw, which it took over in 2005 from the French group Thomson.

The Indian group is planning an initial 5-billion-zloty investment to transform the site into an LCD television plant, the report has said.

The new factory could be up and running within two years after the signature of a deal with Polish authorities, and would employ around 3,000 people.

The presence of the plant is also expected to generate 15,000 jobs in the vicinity, the newspaper said, citing company sources.

Videocon plans to quadruple its investment to an overall 20 billion zlotys, creating a technology research centre similar to one it set up in Japan, said the newspaper.

Poland has already drawn a string of investors in the LCD sector. Last year, the Japanese Toshiba group followed in the footsteps of its European-South Korean counterpart LG Philips, deciding to build an LCD television plant at Kobierzyce, in southwestern Poland.

Japan’s Sharp, meanwhile, began the construction of a factory at Lysomice in northern Poland. By the end of the decade, Poland is set to supply the European market with 40 million LCD televisions a year, according to the report.