Asahi Glass to Enhance Investment in LCD Glass Substrate Business in Korea

Asahi Glass, a Japanese glass substrate maker, is enhancing its investment in Korea’s LCD business. It tries to expand its glass substrate business in Korea, which is emerging as the world’s largest LCD panel maker. Therefore, it is expected to make effort to chase Korea’s largest LCD glass substrate maker, Samsung Corning Precision Glass.

The Ministry of Knowledge Economy said on April 21 that it signed a memorandum of understanding with Asahi Glass, Japan’s largest glass substrate maker, to invest $150 million in its glass substrate business in Korea at the IR Conference for Korea event held in Japan.

Currently, President Lee Myung-bak is visiting Japan. Asahi Glass seems to concentrate its investment on the LCD glass substrate business. Generally, the construction of the LCD glass substrate production line costs KRW 130 to 150 billion. Therefore, Asahi Glass is predicted to add additional production line to its existing two production lines in Gumi, Kyongbuk.

Asahi Glass has operated the automobile glass as well as the display glass substrate business in Korea. In the display business, it has managed Asahi Glass Fine Techno Korea, its local affiliate for LCD glass substrate manufacturing, Asahi PD Glass Korea, another local affiliate for PDP glass substrate, and Hankuk Electric Glass, its local glass substrate affiliate for CRT monitor. AFK began the operation of its first production line last year and the second line in this month in order to respond to the growing LCD industry in Korea. Asahi is sharing AFK’s shares with Hankuk Electric Glass as 67% to 33%. PGK is Asahi’s 100% affiliate.

Meanwhile, it will cancel the listing of Hankuk Electric Glass by increasing its shares in the company due to the decreasing trend in the CRT monitor business.

Asahi is also said that it is interested in the acquisition of the Korean manufacturing part of Schott, a German glass substrate maker, which has withdrawn from Korea.