Multinational LCD parts and components firms such as Merck, Korea, were reported as having the highest performance in 2008, due to the strong display business in Korea. Some international liquid cryst…
Multinational LCD parts and components firms such as Merck, Korea, were reported as having the highest performance in 2008, due to the strong display business in Korea. Some international liquid crystal and glass substrate firms have enjoyed monopolistic status, while more competitive areas such as optical film have had difficulties in the market. Merck recorded a sales increase of 28% and operating profit up 70% from 2007. Chisso Korea was not competitive enough to catch up with Merck in terms of volume, even if profit rate was double digit numbers, but sales volume was only 6% of Merck. according to a spokesman, According to the diversified buyer policy of local LCD panel makers, Chisso has trailed Merck but it couldn“t catch up with it. For a while, Merck will maintain its monopolistic status. Glass substrate recorded the highest operating profit with Samsung Corning Precision Glass seeing over 50% profit rate in 2008, the highest performance in industry. Japanese multinational makers recorded similar performance. PEG, jointly established by LGD and NEG, recorded sales and operating profit both up from 2007. Asahi Glass Fine Techno Korea Co., the Korean branch of Asahi Glass, recorded an icrease of over 60% in sales and 5% in operating profit from 2007. Except for some items such as TAC film for polarizers, dominated by Japanese firms, market competition is intensifying. Dongwoo Fine Chem, an affiliate of Sumitomo, accomplished unrivalled performance in 2008 with sales up 24% and an increase in operating profit of 52%. Meanwhile, Toraysaehan recorded sales similar to 2007 but operating profit decreased about half. SKC Haas Display Films, a joint company of SKC and Rohm & Haas, failed to turn around. An insider of the Japanese film industry said, As local LCD panel companies are under pressure to cut panel prices, the optical film business has been in difficulty to avoid deficit. In particular, since the import proportion of material from Japan is high, profit structure is low.