Solus Advanced Materials said on Tuesday said it has begin construction of a new OLED material factory at Changzhou, Jiangsu province in China.
It is the Korean company’s first factory abroad and it will spend US$20.5 million in the plant.
Solus will use its factory at Iksan, South Korea as a benchmark to build the new factory so that it will manufacture high quality OLED materials, the company said.
The new factory will start operations in the second half of 2022. The company is aiming to secure an annual production capacity of 20 metric tonnes by 2025 there.
Solus said it will react to the Chinese OLED market that is expected to grow exponentially in the coming years.
The company is currently the exclusive supplier of aETL material used for blue OLED to Samsung Display for eight years straight.
It is also developing polymer thin film encapsulation material and quantum dot ink to expand supply to its customers.