Samsung SDI Co Ltd which is a global leader in energy solutions and electronic materials has now entered into a new contract in order to build a new polarizer plant in China.
This move is being made by Samsung SDI in order to increase its share in the very important Chinese market.
Namseong Cho the CEO of Samsung SDI and Li Xiaomin the Part Secretary have signed a memorandum of understanding on the construction of a polarizer film production line at the Pullman Hotel which is situated in the city of Wuxi, Jiangsu Province on May 25th.
The basic function of polarizing films is to control brightness, contrast and other optical features by either blocking or letting pass light coming from the Back Light Unit.
These polarizing films are connected to LCD panels. Apart from being connected to LCD panels polarizers are used in a wide range of display devices such as laptop computers, tablet PC and even smartphones.
Now under this MOU, Samsung SDI has planned to invest more than 200 billion won to build a polarizer production plant in the Wuxi Industrial District with an annual capacity of 30-40 million square meter.
According to the company the mass production of these polarizer films will begin in November 2016. The plant is also expected to meet the demand for around 20-30 million 48 inch LCD TV sets per year.
Currently the company is operating three polarizer production lines in Cheongju which is situated in South Korea but lacks to meet the demand of Chinese customers.
However with this new plant in Wuxi the company is expected to meet the demand from Chinese customers without a delay which will also help Samsung SDI to strengthen its competitiveness in the global market.
The decision by Samsung SDI to start a new production plant in China reflects the growing importance of the Chinese market in the polarizing film market for big screen TV.
It has been estimated that by 2020 the demand from China will increase by more than 16 percent annually.
As we see the rise of 40 inch or bigger LCD panels the Samsung SDI has planned to set up a production line dedicated to super wide polarizer so that its production can be applied to the eight generation LCD panels.
Moreover the CEO of Samsung SDI, Namseong Cho stated that with the new plant in Wuxi the company will be able to secure a polarizing film production base for big screen TV in China which is emerging as the most important display market in the world.
