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Photo = Hyosung Chemical |
[Alpha Biz= Kim Jisun] Hyosung Chemical announced on the 26th that it is considering the sale of its optical film and film business units.
In a public disclosure, the company stated, “We have appointed an advisor to review the potential sale of the optical film and film business units.” However, it clarified that “nothing has been finalized yet” and promised to provide an update either upon confirmation of specific details or within a month.
The optical film business unit produces TAC (Triacetyl Cellulose) film, an electronic material used to protect the surface of polarizing plates for LCD displays. These films are used in TVs, monitors, and smartphones.
Industry analysts estimate that Hyosung Chemical’s optical film business unit could be valued at around 200 billion KRW (approximately $150 million).
Hyosung Chemical began producing TAC film in 2009 at its Yongyeon plant in Ulsan, becoming the first domestic company to manufacture TAC film. It later expanded operations with the opening of its second plant in Oksan, Cheongju, in 2013.
The company is also reportedly considering selling its entire film business, including nylon and PET films.
Both the optical film and film business units operate in highly competitive sectors, particularly against Chinese manufacturers.
In its IR report, Hyosung Chemical explained that its film business faced continued deficits in Q4 of last year due to an oversupply driven by new production expansions in China. It also noted that "demand from Chinese panel manufacturers has increased, accelerating the expansion of local polarizing plate models and intensifying competition in the TAC film market."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
