Nippon Electric Glass Co. said that it expects to spend JPY 40 billion to increase production of glass substrates used to make LCDs by 10% in 2010.
The company informed in mid-September 2009 that it …
Nippon Electric Glass Co. said that it expects to spend JPY 40 billion to increase production of glass substrates used to make LCDs by 10% in 2010. The company informed in mid-September 2009 that it intends to install a new furnace for melting raw materials at its Shiga Prefecture plant, scheduled to raise monthly production capacity to about 4.5 million sq.m. Thanks to the new furnace, the company will mainly produce glass substrates for seventh-generation LCD panels and larger products, while at present it generally provides glass to South Korean and Taiwanese LCD panel producers such as Samsung Electronics Co. However, it also hopes to supply a Panasonic LCD panel factory that is scheduled to come online in Hyogo Prefecture in summer 2010. Operating rate at Nippon Electric Glass dropped to about 50% at the end of March 2009 due to the global economic crisis. Demand, however, has recovered quickly thanks to fast moving LCD television sales due to subsidies in China for the purchase of home appliances and the eco-points programme of the Japanese government which rewards consumers who choose energy-saving home appliances. Other glass substrate manufacturers are also boosting their production. Asahi Glass Co. spent about JPY 15 billion on the expansion of its South Korean plant in July 2009, while US Corning is spending about USD 795 million to set up equipment at the LCD industrial complex to be opened in Sakai, Osaka Prefecture, by Sharp Corp. in October.