To add three production lines by 2012: to expand PET film production by 60,000 tons

SKC (Park Jang-seok, President), one of the world’s top four PET film makers, has the capacity to churn out 140,000 tons of PET film per year with a total of 16 production lines, including 13 in Korea and three in the U.S. But the company is aggressively pushing to expand production facilities to reinforce its global competitiveness. One production line slated for completion next year is already under construction, and two additional lines are set to be built by 2012. As such, the company will have the capacity to produce 200,000 tons of PET film through its 19 lines beginning in 2013.

Laying out his ambitions, President Park Jang-seok said, “The company urgently needs to expand production facilities, since the PET film industry is making rapid growth in the areas of display film and solar cell batteries. By constantly developing new utility of film materials, we will be reborn as a green material company that is competitive in the eco-friendly, renewable energy field.”

Boosting competitiveness through development of expertise for respective plants

Construction is already underway to build plants for EVA sheet and back sheet for solar cells at the Jincheon Plant, which will start mass production in next year’s first half. If a PET film production plant is also constructed, the plant will become the world’s only integrated production complex that comprehensively produces solar cell film, which will allow SKC to provide a so-called total solution in solar cell materials, while helping it boost competitiveness in quality and productivity. The company aims to maintain a 35-percent share of the global market for PET film for solar cells, a sector that is growing by over 25 percent every year.

The company has set a strategy to expedite its Suwon Plant’s focus on the production of display film by running production lines exclusively geared towards display film, and thus aims to maximize production efficiency at the site. Accordingly, the company plans to expand its market share in the global display film market from 25 percent to 40 percent, thus consolidating its position as the No. 1 maker of display film.

Market environment

The market for PET film for solar cells is expected to sustain robust growth of more than 25 percent per year, as the share of solar cell power generation continues to expand due to the policies of numerous governments to cultivate green energy sources, and due to the projected early attainment of “Grid Parity.” PET film for solar cells, which is more advantageous due to high quality and cost competitiveness, will likely see relatively more robust growth in demand. Sales of display film reversed course to expand following a temporary drop in consumption last year, and are projected to increase at least 13 percent this year. Amid the growing physical dimensions of LCD TVs, and the enhancement of their functions, the market is expected to sustain constant growth going forward.