By Cecilia Butini
Merck KgaA said Wednesday that it is going to invest 20 million euros ($23.6 million) to expand its manufacturing capacity of organic light-emitting diodes, or OLED, in Korea and China.
OLED materials are used in panel and display production.
The German pharmaceutical and chemicals company said the expansion--which builds on its Performance Materials segment--will be at its sites in Pyeongtaek, south of Seoul, and Shanghai, China.
The EUR20 million investment will be used to build a new modular production system which is set to facilitate the installation of sublimation units in line with market requirements, Merck said.
Sublimation is a chemical process which OLED materials need to go through in order to guarantee their performance when used in displays.
"As new form factors enabled by OLED technology - such as foldable and rollable displays - continue to penetrate the market, Merck is expanding its OLED manufacturing capacities in Asia to meet the increasing demand for high-purity OLED materials", the company said.
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(END) Dow Jones Newswires