(Yicai Global) Dec. 27 -- LG Display Co. has received approval from the South Korean government for its plans to build a USD4.65 billion organic LED plant in Guangzhou, Guangdong province, to cater to rising demand and cement an early lead in the growing market.

The firm hopes to put the factory into operation through a joint venture at the back end of 2019 and manufacture 60,000 OLED panels a month, the 21st Century Business Herald reported yesterday. LG Display will take a 70-percent stake in the factory and China's Guangzhou Kaide Technology Development Co. will hold the remainder.

OLED television sales are rising sharply in China. Retail sales grew consistently in the 10 months through October, more than doubling on the year in seven of those months. In October, the figure was up 239 percent annually. The display maker hopes by manufacturing locally it can slash production costs and get ahead in the Chinese market.

LG Display is the only company in the country capable of mass producing large-sized OLED screens, and plans to use them for televisions, electronic billboards and similar products. Chinese companies are beginning to grasp the technology behind big OLEDs, but haven't refined production to make them on a large scale.

The firm tried to build a similar plant in July, but the South Korean government shut the plans down after a rigorous review. The new factory will be LG Display's first OLED factory overseas and its second production line in Guangzhou. It initially entered the city in 2014 to manufacture LCD panels.