Asahi Glass Co., Ltd. is to manufacture and market non-alkali glass substrates for TFT LCDs from a new enterprise to be set up in South Korea. Asahi Glass said 25 May 2004 that it is to set up a plant…
Asahi Glass Co., Ltd. is to manufacture and market non-alkali glass substrates for TFT LCDs from a new enterprise to be set up in South Korea. Asahi Glass said 25 May 2004 that it is to set up a plant in Gumi, South Korea, which will become a joint enterprise with South Korea“s Hankuk Electric Glass Co., Ltd. in which Asahi Glass has a 42.76% stake. The new business will be set up in May 2004, and a polishing line for glass substrates will be installed with an investment of approximately JPY 9 billion (USD 79.9 million/EUR 66.9 million). Construction of the polishing line is scheduled to start in August 2004, with commercial production scheduled to start in July 2005. Asahi Glass said demand for TFT LCD panels is growing faster than expected, and is projected to increase at a rate of 25% per annum in terms of volume. In addition to demand for PC monitors, demand for TVs is expected to grow significantly, as sports fans upgrade in time for events like the Olympic Games and the Euro 2004 soccer championship. Given the shift towards larger panels for TVs, demand for glass substrates is expected to grow substantially, exceeding growth in demand for the panels themselves. There are fears that supply will be unable to keep pace with demand for TFT LCD glass substrates, especially for larger sizes. Asahi Glass currently produces glass substrates at its Kansai and Keihin Plants in Japan, and carries out polishing at Kansai Plant, Asahi Glass Fine Techno (Yonezawa, Japan; 100% owned by Asahi Glass) and Asahi Glass Fine Techno Taiwan (Douliu, Taiwan; 100% owned by Asahi Glass). To respond to continuing strong demand for glass substrates, Asahi Glass says it will substantially increase its production capacity by installing two additional furnaces and polishing lines in Taiwan from September 2004 to April 2005. As regards demand for TFT glass substrates by country/region, Asahi Glass estimates that Japan accounted for 30%, Korea for 40% and Taiwan for 30% in 2003. This time, Asahi Glass has decided to establish its first production site in Korea where growth in demand, especially for large-sized LCD panels, can be expected in the future. Establishment of the new company and installation of the polishing line are the first steps to expand its presence in Korea, and Asahi Glass says it will make the necessary investments to ensure a stable supply to customers in response to the growing demand for glass substrates expected well into the future. In branching out into Korea, Asahi Glass says it is “proactively utilizing the excellent foreign investment support system provided by the Korean government and municipalities”. Provisionally named Asahi Glass Fine Techno Korea, the new company will be located at Gumi, Gyeongsangbuk-do, Republic of Korea, and have a capital of at least USD 30 million. Initially, a new firm will be established in which the Asahi Glass Co. has a 100% holding (including investment from the wholly-owned subsidiary of the company) in order to quickly start procedures for building the plant. Following that, the company will discuss with Hankuk Electric Glass Co., Ltd. such issues as shareholding ratio, and upon conclusion of the agreement, will convert the new business into a joint enterprise. With regard to its shareholding ratio, Asahi Glass says it intends to hold a large enough controlling interest in order to take the initiative in day-to-day management of the enterprise, and promote globally integrated management of the business. Unlike most of its peers, Asahi Glass incorporates the float process, which is suitable for volume production of larger sizes, in manufacturing its “AN100” grade glass substrates. “AN100” is less prone to warping and suffer minimal contraction in heat treatment during the manufacturing process of TFT LCD panels. With growing environmental conservation concerns, Asahi Glass claims the product is also highly valued by customers as an “environmentally-friendly” glass substrate, free of toxic substances such as arsenic and antimony that are normally used in the manufacturing process to remove bubbles. By “leveraging its strengths in the areas of the manufacturing process and environmental protection”, Asahi Glass says it will proactively expand its presence while identifying the trends in markets such as Japan, Korea and Taiwan, with the aim of becoming the global leader in the business.Asahi Glass Co., Ltd. is to manufacture and market non-alkali glass substrates for TFT LCDs from a new enterprise to be set up in South Korea. Asahi Glass said 25 May 2004 that it is to set up a plant in Gumi, South Korea, which will become a joint enterprise with South Korea“s Hankuk Electric Glass Co., Ltd. in which Asahi Glass has a 42.76% stake. The new business will be set up in May 2004, and a polishing line for glass substrates will be installed with an investment of approximately JPY 9 billion (USD 79.9 million/EUR 66.9 million). Construction of the polishing line is scheduled to start in August 2004, with commercial production scheduled to start in July 2005. Asahi Glass said demand for TFT LCD panels is growing faster than expected, and is projected to increase at a rate of 25% per annum in terms of volume. In addition to demand for PC monitors, demand for TVs is expected to grow significantly, as sports fans upgrade in time for events like the Olympic Games and the Euro 2004 soccer championship. Given the shift towards larger panels for TVs, demand for glass substrates is expected to grow substantially, exceeding growth in demand for the panels themselves. There are fears that supply will be unable to keep pace with demand for TFT LCD glass substrates, especially for larger sizes. Asahi Glass currently produces glass substrates at its Kansai and Keihin Plants in Japan, and carries out polishing at Kansai Plant, Asahi Glass Fine Techno (Yonezawa, Japan; 100% owned by Asahi Glass) and Asahi Glass Fine Techno Taiwan (Douliu, Taiwan; 100% owned by Asahi Glass). To respond to continuing strong demand for glass substrates, Asahi Glass says it will substantially increase its production capacity by installing two additional furnaces and polishing lines in Taiwan from September 2004 to April 2005. As regards demand for TFT glass substrates by country/region, Asahi Glass estimates that Japan accounted for 30%, Korea for 40% and Taiwan for 30% in 2003. This time, Asahi Glass has decided to establish its first production site in Korea where growth in demand, especially for large-sized LCD panels, can be expected in the future. Establishment of the new company and installation of the polishing line are the first steps to expand its presence in Korea, and Asahi Glass says it will make the necessary investments to ensure a stable supply to customers in response to the growing demand for glass substrates expected well into the future. In branching out into Korea, Asahi Glass says it is “proactively utilizing the excellent foreign investment support system provided by the Korean government and municipalities”. Provisionally named Asahi Glass Fine Techno Korea, the new company will be located at Gumi, Gyeongsangbuk-do, Republic of Korea, and have a capital of at least USD 30 million. Initially, a new firm will be established in which the Asahi Glass Co. has a 100% holding (including investment from the wholly-owned subsidiary of the company) in order to quickly start procedures for building the plant. Following that, the company will discuss with Hankuk Electric Glass Co., Ltd. such issues as shareholding ratio, and upon conclusion of the agreement, will convert the new business into a joint enterprise. With regard to its shareholding ratio, Asahi Glass says it intends to hold a large enough controlling interest in order to take the initiative in day-to-day management of the enterprise, and promote globally integrated management of the business. Unlike most of its peers, Asahi Glass incorporates the float process, which is suitable for volume production of larger sizes, in manufacturing its “AN100” grade glass substrates. “AN100” is less prone to warping and suffer minimal contraction in heat treatment during the manufacturing process of TFT LCD panels. With growing environmental conservation concerns, Asahi Glass claims the product is also highly valued by customers as an “environmentally-friendly” glass substrate, free of toxic substances such as arsenic and antimony that are normally used in the manufacturing process to remove bubbles. By “leveraging its strengths in the areas of the manufacturing process and environmental protection”, Asahi Glass says it will proactively expand its presence while identifying the trends in markets such as Japan, Korea and Taiwan, with the aim of becoming the global leader in the business.