Sumitomo Chemical To Expand Production of LCD Polarizing Films in Asia
Sumitomo Chemical announced that it will substantially expand the production of polarizing films, both raw material rolls and chip-cut films, in Korea, Taiwan and China, to meet a rapidly increasing demand for the films. At the same time, the marketing set-up will also be reinforced to provide improved services to customers.
The polarizing films are a key component of Liquid Crystal Displays (LCDs) used mainly in computer monitors and mobile telephones. The demand for the films in these three countries is growing much faster than anywhere else in the world.
Projects that are envisaged are outlined below. Total investment will amount to approximately ¥15 billion, and annual sales from operations in the three countries are expected to reach ¥30 billion by 2006.
Korea
The Company will newly build a plant to produce raw material film rolls within the premises of Dongwoo Fine-Chem’s Pyungtaek Works, the Company’s IT-related chemicals manufacturing base in Korea. Construction of the plant will commence soon and is due to be completed by the spring of 2003. Adding the raw material film roll production to the existing chip-cut process, the Company will have the fully integrated production line of polarizing films in Korea. The products thus manufactured will be sold through Dongwoo Fine-Chem’s sales channel not only within Korea, but also to other Asian markets such as China and Singapore.
Dongwoo Fine-Chem Co., Ltd. Head Office: Iksan, Korea Established: December 1991 Capital: 23.6 billion won
Taiwan
The Company’s affiliate, SC-IK Technology Co., Ltd., has been running the chip-cut operation in Taiwan since last year. The Company will newly construct a complete production line of polarizing films, including raw material rolls production, in the Tainan County Industrial Park. Construction will be complete in 2003 and products will be sold mainly to domestic customers. SC-IK Technology Co., Ltd. Head Office: Kaohsiung, Taiwan Established: June 2001 Capital: 29 million Taiwan dollars
China
The Company established Shanghai KSC Optical Device Co., Ltd. to undertake polarizing films chip-cut production in Shanghai’s Wanggaoqiao Free Trade Zone last year, and the operation began recently. The raw material rolls used in the chip-cut step will be imported from Dongwoo Fine-Chem of Korea upon completion of the facility now under construction at its Pyungtaek Works.
Shanghai KSC Optical Device Co., Ltd. Head Office: Shanghai, China Established: September 2001 Capital: 2.1 million U.S. dollars
To further expand its IT-related chemicals business, the Company considers it essential to take an integrated approach to production and marketing capable of responding to customer needs promptly. It is from this perspective that the Company has decided to substantially expand and strengthen polarizing films production in Korea, Taiwan and China. The Company will become able to produce a total of 15 million square meter polarizing films per year , including the production currently carried out in Japan by Sumitomo Chemical (Ehime Works), Okura Industrial Co., Ltd. and OLS Co., Ltd., a Sumitomo-Okura joint venture. In the longer term, Sumitomo Chemical will expand its overseas production to include other IT-related chemical products than the polarizing films.
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