Construction of Production Base in Korea for LCD-related Materials- Expansion of Supply Systems for Alignment Films and Overcoats

Chisso Corporation (Head office: Chuo-ku, Tokyo, President: Shunichi Okada) has started construction of the production base for alignment films and overcoats for color filters in the Republic of Korea in order to respond to continuously expanding LCD industry in the Republic of Korea.

Chisso has so far produced liquid crystals and LCD-related materials in Japan from three factories of Tobata, Minamata, and Goi, and sold the products. Moreover, in November of last year, Chisso Fine Techno Corporation was established with 100% Chisso investment, expanding the production of liquid crystal intermediates, alignment films, and transparent materials.

On this occasion, Korean Corporation "Chisso Korea Co., Ltd." will be founded with 100% investment from Chisso Fine Techno Corporation, and a new factory is scheduled to be constructed in Pyeongtaek, Kyonggi-Do for the production of alignment films and overcoats for color filters. Furthermore, the construction is scheduled to begin on April 1, 2005, and to complete in September 2005.

In the LCD industry, Asian regions of Japan, Korea, and Taiwan continue to be the supply bases for the world, within which Korea is expected to occupy an especially important position. Currently, the investment in 7th generation liquid crystal panels is getting into stride in Korea, and the demands for liquid crystals and LCD-related materials are increasing more and more, while the local production is strongly requested. The construction of this factory meets such customers' needs, while acting as the production base with functions of improving technical service and speeding up the development of new materials by accelerating direct access with the customers.

Moreover, also in Taiwan, Chisso is planning the construction of a liquid crystal blend facility (Second LIXON Center) in Taiwan scheduled to complete around autumn of 2006, aiming at increasing the capacity, improving services, and strengthening cost competitiveness for the consumers. Combined with the factory construction in Korea, the gross investment amount is estimated to reach approximately 5 billion yen. In addition to liquid crystals, in the fields of other LCD-related materials, Chisso aims to be the total solution provider of LCD-related materials with contributing to the further developments of LCD industries based in Asia by improving and expanding the production and sales bases in Japan, Korea, and Taiwan.