Asahi Glass to Sell LCD Panel Unit

Asahi Glass Co.  plans to end liquid crystal display panel production by selling Optrex, a loss-making LCD subsidiary, it was learned Thursday.

Several companies, such as investment funds CVC Capital Partners of Britain and Japan Industrial Partners Inc., as well as Nippon Seiki Co., a Honda Motor Co. -affiliated auto parts maker, are interested in buying Optrex, informed sources told Jiji Press.

Asahi Glass will select a buyer as early as October, the sources said. The value of the company is estimated at between 10 billion and 20 billion yen, they said.

Tokyo-based Optrex is capitalized at 2.5 billion yen, of which 60 pct was put up by Asahi Glass and the remaining 40 pct by Mitsubishi Electric Corp..

Following the sale, Asahi Glass will focus on production of glass substrates for LCD panels and other materials for electronic components. Mitsubishi Electric will also sell its shareholdings.

Optrex, which makes small and midsize LCD panels, has suffered dismal earnings in recent years as prices of such panels have fallen due to escalating competition from domestic and foreign rivals. Spending for producing high-definition LCD panels, used in mobile phones, car navigation systems and digital cameras, is weighing on the company.

Established in 1976, Optrex generates annual sales of some 70 billion yen. It boasts a global market share of over 80 pct in LCD panels for automotive speedometers.