Sumitomo Chemical to Make CDT Wholly-owned Subsidiary

Aug 2, 2007 18:43 Masao Oonishi, Nikkei Microdevices

Sumitomo Chemical Co. Ltd. has announced it reached an agreement with Cambridge Display Technology Inc. (CDT) of the United States to acquire CDT as a wholly-owned subsidiary.

The agreement is aimed at early commercialization of large-surface, low cost light-emitting materials and devices using polymer organic EL (electroluminescence).

"We will accelerate development of popular applications such as large-screen TVs and wall lighting systems," said Kiyohiko Nakae, Executive Officer, Sumitomo Chemical, explaining the reason for the acquisition. "Although expecting no return (from this investment) over the next two to three years, we aim to be ready when the rapidly growing market is established in and after 2010."

CDT Inc. was listed in 2004 on the NASDAQ exchange in the United States by Cambridge Display Technology Ltd. of the United Kingdom, which is CDT's development and business center in Cambridge, England. Sumitomo Chemical will purchase all of CDT's outstanding shares through NASDAQ.

The planned purchase price is approximately $285 million (USD). CDT will become Sumitomo Chemical's subsidiary following the approval at CDT's shareholders' meeting in fall 2007. Sumitomo Chemical formed Sumation Co. Ltd., a joint manufacturing and marketing venture with CDT, in November 2005.

Nakae indicated a roadmap, saying, "We will commercialize a display, which is not a TV, in 2008. Then in 2009 to 2010, we will strive to release an organic EL TV product." He explained that the color purity of emitted RGB light is equivalent to that of low-molecular organic EL materials.

"We consider developing not only materials but also application devices since we recently begun to know we can also extend a life and efficiency by changing the material's structure," he said, citing the green organic EL material's light-emitting efficiency as the company's current challenges to be addressed.

"Polymer organic EL is still advantageous," Nakae said. "Its features of coating and printing processes can still be applied because it does not require a vacuum environment when manufacturing. And it can be made into large-surface devices at low costs because it has a simple, basically two-layered structure consisting of a light-emitting layer and a hole-injection layer."

Sumitomo Chemical has already started co-developing such devices with some display manufacturers, he said,

"We hope that we can bring our organic EL displays up to a level that can be shown to the public within 2007," Nakae said.

The company will also focus on organic EL lighting systems that are expected to replace fluorescent bulbs along with displays, he added.

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