ICH is entering display material business. It will diversify the smartphone-centered business structure, and secure mid- to long-term competitiveness.
ICH recently signed a contract to acquire Main Elecom’s polyurethane business. It will acquire the assets, liabilities, and goodwill of the business for 32.7 billion KRW.
ICH produces film-type metal foil antennas (MFAs), electromagnetic interference (EMI) shielding gaskets, and adhesive tapes for information technology (IT) devices. The display material business has been chosen as a new business in order to diversify customers that are centered around smartphone business.
ICH established a polyurethane foam facility line at its headquarters in Gunpo, Gyeonggi Province, and began to mass-produce display composite material products for laptops since last third quarter. Composite materials are attached to organic light emitting diode (OLED) displays to mitigate heat and external shocks. The main raw materials are polyurethane foam and aluminum embossing.
ICH plans to move the acquired polyurethane foam facility to Vietnam. The Vietnamese subsidiary currently produces aluminum embossing on its own. ICH will be able to secure cost competitiveness by internalizing key raw materials for display composite material products. The production cost of gaskets can also be reduced since its raw material is polyurethane foam as well.
Considering the business acquisition as an opportunity, ICH will revise mid- to long-term commercialization of products using polyurethane foam, such as heat dissipation materials for secondary batteries and materials for home appliances It will expand its customer base for its main product, MFA.
CEO of ICH Younghun Kim said, “The business acquisition enabled us to quickly enter the display material business. We will expand sales through having synergy effects, such as internalization of core raw materials. ”
By Staff Reporter Yoonseop Song (sys@etnews.com)