LG Display today announced that it is investing in a new OLED light manufacturing facility. This will be the company’s first 5th generation OLED light panel manufacturing plant in the world.

The factory will be located in Gumi, South Korea, where it will be manufacturing a range of OLED light panels. The plant will provide LG will “significant price competitiveness,” along with allowing it to “considerably enhance” the quality of the panels.

Mr. Young Kwon Song, Senior Vice President and Head of Strategy & Marketing Group at LG Display, said, “Our OLED light business will further strengthen LG Display’s commitment to nurture OLED as the future growth engine. Based on LG Display’s strong track-record and know-how in OLED display business, we will create synergy with the OLED light business and maintain our strong position in the overall OLED industry going forward.”

Initially, the factory will be able to produce 15,000 glass substrates per month, and depending on the market situation, the company can ramp up its production.

LG Display says that the increased production capacity will give it economies-of-sale that will allow it to further reduce the price of its OLED panels. Additionally, the larger glass substrate of its 5th generation OLED panels will provide the company with flexibility to produce different size of panels.

With OLED panels bound to replace LCD displays in the future, it makes sense for LG Display to increase its OLED production facilities as it will better allow it to capture the market in the future.