By Craig Zammit

SEOUL: Negotiations are said to be underway between Japanese electronics maker, Toshiba Corporation, and the LG.Philips LCD Company to form a joint venture and invest in an LCD assembly plant to be situated in Poland in Central Europe.

It has been reported by Reuters that Toshiba is looking to invest 5 billion yen ($A56.3 million) in the approximate 64.5 billion yen ($A726.7 million) LG.Philips LCD assembly plant, which is schedule to commence operation in early 2007.

“Negotiations are under way between Toshiba and LG.Philips and a decision will be made sooner or later,” an unnamed source told Reuters yesterday.

If the joint venture is confirmed, the plant will provide Toshiba a means to secure a steady supply of LCD panels, while LG.Philips will gain an expanded client base.

According to Forbes, Toshiba aims to triple its existing LCD TV output in Europe to a reported three million units by approximately 2009, with the Poland factory producing screens 40-inches and above.