Doc. No.: NR180508E

Kyoto, Japan - May 8, 2018 - SCREEN Holdings Co., Ltd. has finalized a decision to construct a new factory at the site of its existing Hikone Plant. The facility is scheduled for completion in October this year and is expected to significantly expand SCREEN's ability to manufacture display production and coating equipment.

Conceptual drawing of completed facility

In recent years, the display industry has seen strong growth in sales of large size LCD televisions and smartphones, particularly in the Chinese market. There has also been increasing interest in applications for high-resolution flexible displays, including technologies requiring high performance and thinness such as wearable devices and electronic paper as well as in-vehicle displays. 

In addition, the market for electric vehicles and other environmentally friendly vehicles is expected to continue its present level of expansion. Forecasts indicate this growth is likely to further increase demand for rechargeable batteries including lithium-ion cells. 

After careful consideration of the current market environment, SCREEN has decided to strengthen its production systems. The move is intended to ensure sustainable growth of its businesses over the mid to long term. SCREEN anticipates the total construction cost of the new facility will require an investment of around two billion yen.

Once completed, the factory will be able to supply the systems required to handle the production of ever larger displays, as well as provide the stringent levels of cleanness necessary for the manufacture of production equipment for flexible displays including increasingly precise OLED panels. It will also be able to supply the post-processing systems for displays managed by group company SCREEN Laminatech Co., Ltd. and the coating systems for rechargeable batteries.

SCREEN established SCREEN FT Changshu Co., Ltd. in March this year in Changshu, China as a joint venture with local companies, and the new Japanese facility will work closely with it to expand group production capacity. This will in turn reduce overall costs for assembly and logistic, etc., enabling the Group to achieve further increases in earnings.

SCREEN expects the restructuring of its operations to further increase its share of the display production equipment market. The plan will also help to strengthen its profitability and competitiveness in this market and the coating equipment field.