CHINA'S top three LCD panel makers will form a joint venture and to float shares overseas to raise capital for expansion, which will help them fight against foreign rivals such as Samsung and Sharp.

Shanghai-based SVA Group's LCD subsidiary, Beijing-based BOE Technology Group and Jiangsu Province-based IVO will set up the JV before the end of June and they plan to launch an initial public offering overseas after that, Gu said on the sidelines of the FPD China 2007 forum held in Shanghai.

SVA's subsidiary and BOE are listed in Shanghai but their LCD business lost money in 2006 due to keen competition with bigger foreign rivals.

After the setting up of the JV, the three parties will adopt unified prices and equipment purchasing system. The three parties will hire an accounting firm to audit assets before deciding on the share structure and investment amounts.

Expected monthly production capacity at the JV will reach 280,000 units, according to Gu. The JV's capacity ranks No. 6 in the world, according to Zhang Xingang, FPDisplay Times' editor-in-chief and an industry observer.

The price of LCD panels is dropping rapidly, and the increased production scales help firms improve profitability, analysts said.

Overseas firms, such as South Korea-based Samsung and Japan-based Sharp, dominate the domestic market by offering bigger products and through heavy promotion.