Merck will start operation of KRW 25 billion invested facility in order to directly produce organic light emitting diode (OLED) materials in South Korea that were imported from Germany. Merck is shortening key material supply times and respond quickly to market demand as a plan of accelerating their localization strategy.
Merck Korea announced on the 9th that they had completed the installation of OLED sublimation refinement equipment and held a completion ceremony in the OLED Application Center (OAC) located in Poseung, Pyeongtaek-si, Gyeonggi-do. Poseung Plant of Merck Korea is on a site of 20,600 ㎡, and in charge of manufacturing display materials, product development, and quality control. With the construction of this OLED sublimation refinement facility, it is expected to greatly expand the production of the Poseung plant. The sublimation refinement process and vacuum evaporation coating test are key processes that are directly related to the lifespan and performance of display panels.
Merck invested 20 million EUR (about KRW 25 billion) to additionally adopt OLED sublimation refinement equipment and an evaporator for quality test in OAC for two years from 2020. With this investment, they have secured the infrastructure that can significantly shorten the supply period for domestic products. The logistic distance for the delivery of existing Merck products were about 8,000 km, but as a result of the construction of the new facility, it was reduced to about 60 km. At the end of last year, Merck also adopted chemical mechanical polishing (CMP) slurry production facility in South Korea to flattening semiconductor wafers. The cleaning solution used in the semiconductor extreme ultraviolet (EUV) process is also about to be mass produced in South Korea.
The expansion of Merck’s domestic production capacity was caused by their strategy of business, 'closer to customers'. By shortening the physical distance, cooperation with customers can be strengthened and a more stable response to market demand is possible. By reducing logistics time and cost, eco-friendly competitiveness such as carbon emission reduction can also be achieved.
Merck finalized South Korea as a major investment target country and announced a 600 million EUR (KRW 808.6 billion) investment plan last year as part of a 'level up' growth program. They are currently preparing detailed investment strategies for R&D and production capacity expansion in the semiconductor and display fields. Merck is expected to create many jobs not only expanding domestic production.
Woo-kyu Kim, CEO of Merck Korea, said, “South Korea is leading the global OLED market with a market share of over 80%, and as a leading electronic material supplier, Merck is committed to supporting market-leading South Korean panel manufacturers through a strong and stable global supply network of display materials. With the latest South Korean technology, including innovative materials and solutions and the introduction of the newly completed sublimation refinement equipment, we are pleased to be able to quickly provide our customers and partners."
By Staff Reporter Dong-jun Kwon djkwon@etnews.com