LG Electronics Inc., the world's second-largest plasma display maker, reported a record 194 billion won loss in the first quarter after competition from Matsushita Electric Industrial Co., and the rising popularity of rival liquid-crystal display technology forced the company to cut prices.
LG will stop production at its oldest panel-manufacturing line at the A1 plant in Gumi, southeast of Seoul during the first half to increase efficiency in the plasma business. Halting production at A1 with a monthly capacity of 70,000 plasma panels will save 20 billion won ($21 million) to 30 billion won annually.
Is this a case of over-investment or creative destruction?
Whoever crystallizes the conflated calculus of creative destruction and over-investment will come close to playing God.
[Click here for full story at: BLOOMBERG.COM]
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