Cheil Industries, an affiliate of Samsung Group, said on November 7 that it plans to spend 1.8 trillion won (US$1.69 billion) over the next three years on organic light-emitting diodes (OLED) and display film to nurture the materials business to stay competitive.
Recently, Cheil Industries acquired Germany-based Novaled AG, a world-class provider of OLED technologies and materials, by investing 173 billion won (US$162 million) to acquire a 50 percent stake in the German company.
The Korean company launched its OLED business in 2007, and set up a plant in 2011 to produce materials used for next-generation displays.
Cheil Industries has earned around 43 percent of its sales from its chemical business and 26 percent from its electronic materials arm. The company is expecting to generate around 100 billion won (US$93 million) in sales from its OLED business next year.
Last month, Cheil Industries announced its plan to sell its fashion business unit to sister firm Everland in a deal worth around 1.5 trillion won (US$1.4 billion), to focus on its materials business.