UPDATE 1-Samsung Elec to manage Samsung SDI's PDP business

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SEOUL, July 1 (Reuters) - Samsung Electronics (005930.KS) is taking over the management of affiliate Samsung SDI's (006400.KS) plasma screen business, a move analysts say could help revive the struggling operation.

Samsung SDI, which makes plasma display panels (PDP), traditional cathode-ray tubes and organic display screens, has lost money for sixth straight quarters as TV panel prices continued to fall and LCD flat screens became cheaper and more popular.

Samsung Electronics' visual display division, which makes plasma and liquid crystal display (LCD) TVs, will manage Samsung SDI's PDP business, effective immediately, Samsung SDI said in a statement.

"The decision is to maximise cost reduction and improve our competitiveness in production and sales," Samsung SDI said.

Analysts say the management integration will help streamline the TV production chain and make PDP more viable in products where it has an competitive edge.

"Costs will fall as they can eliminate unnecessary process such as testing and packaging when panels are shipped for TV production," said Lee hak-moo, an analyst at Mirae Asset Securities.

"It helps Samsung to make TVs in more strategic way, such as earmarking PDP more extensively for 50-inch or large sets."

Plasma display was once the most cost-effective technology for big flat-screen TVs but it is losing ground as LCD makers ramp up output and cut costs.