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Samsung SDI's exhibition booth at China Cycle 2024 in Shanghai in May (Samsung SDI) |
Samsung SDI has decided to sell its polarizing film business to China’s Wuxi Hengxin Optoelectronic Materials for 1.12 trillion won ($833.3 million) as the company aims to focus on honing the competitiveness of its electronic materials unit, the Korean battery maker said Tuesday.
Polarizing films, optical films that allow displays to show an image by controlling the amount of light, affect the image quality of the screen.
According to the company’s regulatory filing, Samsung SDI’s manufacturing and sales businesses of polarizing films at its plants in Cheongju, North Chungcheong Province and Suwon, Gyeonggi Province, will be handed over to the Chinese firm. The sale also includes Samsung SDI’s 100 percent stake in its Wuxi subsidiary. The battery maker invested 210 billion won to build the Wuxi manufacturing plant in 2015 to meet growing demand in China.
The deal, which was approved by Samsung SDI’s board of directors, will be completed later after getting the approval of regulatory authorities.
“The electronic materials unit will focus on semiconductor materials, (organic light-emitting diode) materials and battery materials; enhance competitiveness through continuous investment; and maximize synergy with the battery business,” said Samsung SDI.
Samsung SDI’s electronic materials unit logged 577.2 billion won in sales and 72.2 billion won in operating profit in the second quarter of this year, up 1 percent and 16 percent on year, respectively.
Wuxi Hengxin Optoelectronic Materials is a limited partnership company between Nuoyan Capital and HMO. NY Capital, which was established in 2016, operates about 40 affiliates in the sectors of display, smart cars and semiconductors. HMO, which is one of NY Capital’s affiliates, manufactures and sells polarizing films.
