Nanjing government has signed an agreement with Sharp of Japan and the state-owned China Electronics Technology Group to jointly set up an eighth-generation LCD panel plant in the Jiangsu capital. Sharp will also build an LCD research and development centre to support the project, reported China Daily.

The agreement also enabled a joint venture between Nanjing Panda Electronics and CETC to take over the running of Sharp’s sixth-generation LCD panel plant, in which the Japanese company will provide the core technology.

Nanjing government hopes to complete construction of two advanced LCD production projects and three supporting industrial parks in five years.

Investment in the panel plants, along with the R&D centre, will total RMB65bn. The Panda plant should be operational by March 2011.