Merck Investing EUR 30 Million in Asia to Meet Liquid Crystal Demand
Merck KGaA said that it expects sales of its liquid crystals to grow significantly at least through 2008 as demand for large, flat LCD televisions grows. In order to meet this burgeoning demand, the company will invest EUR 30 million this year to expand LC capacity in Asia. In addition, it will open a new EUR 250 million manufacturing plant in Germany that will triple its current liquid crystal capacity.
In 2003, worldwide production of LCD televisions was well below 10 million sets but industry analysts expect that market to grow by 50% annually at least through 2008. Indeed, Merck's sales of liquid crystals and related products jumped 61% to EUR 136 million in the first quarter of 2004, spurred by demand for flat-screen TVs. Merck has 69% of the global market for all types of liquid crystals.
Merck's award-winning scientists developed the newest generation of liquid crystals, which allow LCD manufacturers to make crystal-clear television screens bigger than 50 inches. These patented technologies - Thin-Film Transistor / In-Plane Switching (TFT-IPS) and Thin-Film Transistor / Vertical Alignment (TFT-VA) liquid crystals - mean that Merck is the leading LC supplier for big-screen TVs.
"Merck made large LCD TVs possible with its innovative technology and we are prepared to keep the TV-screen industry well supplied," said Prof. Thomas Schreckenbach, Merck's management board member responsible for Chemicals. "One of the secrets to Merck's success in liquid crystals is our close working relationship with our customers, all of whom are in Asia. These continuing investments in Asia show our commitment to maintaining these close ties."
The EUR 30 million will be used to expand liquid crystal mixture plants in Japan and Korea and to build a new mixing plant in Taiwan.
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