Tuesday, July 20, 2004
Sumitomo Chem to build China LCD materials plant
Reuters Tokyo, July 20
Japan's Sumitomo Chemical Co Ltd said on Tuesday it will build a new plant in China to boost its production capacity for materials used in liquid crystal displays and help it meet rising demand in Asia.
The Japanese chemical maker said the factory would be built in Wuxi, in eastern China's Jiangsu Province, and begin operations in about a year's time. The new facility will produce polarisation film and light guiding films, the company said.
Sumitomo Chemical is one of a number of chemical firms in Asia ramping up production as brisk sales of LCD televisions drives demand. Nitto Denko Corp and South Korea's LG Chem Ltd are also boosting production of LCD film.
Polarisation film is an indispensable component in LCD production as it allows only light moving on a certain axis to pass to the panel. Without it, the LCD would appear merely as a bright screen.
Light guiding films are used in LCD backlights.
The company said the new plant would initially have an annual production capacity of 5,000 tonne of light-guilding film and the ability to produce 10 million sheets of polarisation film per month.
Capacity will be raised to 35 million sheets of polarisation film per month and 10,000 tonne per year in the second half of 2006, Sumitomo Chemical said in a release.
The company did not disclose an investment figure for the new plant, but said it planned to establish a wholly owned subsidiary in China by the end of this month.
It will be initially capitalised at $9 million, but that will be raised to $73 million within three years.
© HT Media Ltd. 2004.