SKC of Korea and Toyobo of Japan signed an OEM contract on July 5 for polyester (PET) film production and supply for use in display production. According to the contract, PET film supply from SKC will be initiated this month.
Toyobo is a top-tier Japanese textile and chemical company currently supplying its PET films to display manufacturers such as LG Display and BOE. Toyobo recently proposed OEM cooperation to SKC with its PET film order backlog increasing fast amid an increase in LCD panel production.
SKC has developed its own PET films and is scheduled to supply them to South Korean and Chinese display manufacturers, including LG Group subsidiaries. Specifically, SKC is expected to supply the films to LG Chem so that polarizing plates equipped with the films are supplied to LG Display.
A SKC official said the two companies opted for cooperation instead of patent disputes. The OEM contract signals the possibility of bilateral technological cooperation.
“South Korean and Japanese companies have worked closely with each other for decades, and yet they are currently hesitating due to diplomatic tensions,” said an official of the Korea Employers Federation, adding, “Continuous cooperation between the two sides can send a positive signal as in the case of SKC and Toyobo.”