On the afternoon of June 6, Shanjin Optoelectronics, the world’s largest polarizer supplier, held an annual production meeting of 50 million yuan. The commissioning ceremony of the Zhangjiagang project of square meters is the first world-leading ultra-wide production line independently developed and constructed by Shanshan Co., Ltd. (600884) after its acquisition of LG Chem polarizer. Its technology, cost and product performance competitiveness have reached global leadership.
"The commissioning of the project has laid a solid foundation for the growth and development of Shanjin Optoelectronic's polarizer industry as well as the research and development and manufacturing of domestic high-end polarizers." Zheng Ju, chairman of Shanshan Co., Ltd., said at the commissioning ceremony, "With the most complete industrial chain layout, the most advanced R&D technology and the most leading production capacity scale, we are determined to become the most influential top new brand in the world. Display materials companies promote the rapid growth of the display industry. ”
Polarizer is known as the "chip" of the optical industry. It is not only one of the most important materials for manufacturing LCD panels, accounting for about 10% of the cost of LCD panels, but it is also one of the most difficult areas to localize LCD panel technology in my country, which has mainly relied on imports for many years.
With the rapid development and expansion of display panels and terminal products in mainland China, the demand for polarizers has gradually shifted to mainland China, and the localization of polarizers is also imperative. According to Omdia's forecast, the market demand for polarizers in mainland China in 2022 will be approximately 3. 7.2 billion square meters, accounting for 67% of the global polarizer market demand, and it is expected that the demand proportion will reach 80% by 2026.
In February 2021, Shanshan Co., Ltd. spent US$1.1 billion to complete the acquisition of LG Chem's polarizer business, becoming the world's largest polarizer company. After the acquisition was completed, the world's four major production bases and more than 1,700 patents were all delivered, and the original operating and technical teams remained unchanged.
As the world's leading polarizer company, Shanjin Optoelectronics has led China's polarizer industry to become an important pole in the global new display industry. The market share of Chinese polarizer companies has increased from less than 10% to more than 45%. With the subsequent establishment of Shanshan Polarizer Global R&D Center, the supply chain economy and safety of the local downstream panel industry will be further guaranteed.
The Shanjin Optoelectronics Zhangjiagang project, which will be put into operation in March 2021, is the first world-leading ultra-wide production line independently developed and constructed after Shanshan acquired LG Chem polarizer. After the project is completed, Shanjin Zhangjiagang will have an annual output of 50 million square meters of polarizers. While expanding its production capacity, it will also increase the level of localization and build a double barrier between polarizer production technology and production capacity.
Zheng Ju, chairman of Shanshan Co., Ltd., said that Shanjin insists on strengthening chain supplementation. The strategic layout of the chain will never waver, and will give full play to the leading advantages of the new display material industry, coordinate with upstream and downstream powerful alliances, strengthen the chain and supplement the chain, and extend the layout to the upstream polarizer materials, surface treatment technology and other fields through mergers and acquisitions and cooperation to make up for the shortcomings of the domestic polarizer industry chain. Shanjin Optoelectronics will rely on the most complete industrial chain layout, the most advanced R&D technology and the most leading production capacity scale to promote the rapid growth of the display industry.
Shanjin Optoelectronics’ global market share will exceed 50%
Minsheng Securities Research Report believes that Shanshan Co., Ltd. continues to rank first in the world in polarizer market share, and continues to invest in R&D and production capacity. The annual shipment volume of polarizers was 127 million square meters, with a market share of 29%, continuing to rank first in the world. The company strengthens the development of full-size products, new technologies (for OLED mobile TVs, VRAR displays) and new materials (new compensation films, environmentally friendly adhesives, high-performance adhesives, etc.) to improve product competitiveness. Shanjin's Guangzhou, Zhangjiagang, and Sichuan Mianyang production lines are being constructed in an orderly manner as planned, and it is expected that the market share will further increase in the future.
According to industry insiders, based on mergers and acquisitions, Shanshan has added 6 new polarizer pre-engineering production lines. After all new projects reach capacity, Shanshan will be in a leading position in the world with 12 pre-engineered production lines and a production capacity of 320 million square meters per year. By then, Shanjin Optoelectronics' global market share will exceed 50%, accounting for half of the world's polarizers.
As a local enterprise, Shanjin Optoelectronics faces changes in market trends and responds to customer and end-market needs with more flexible and faster services, which also leads to breakthroughs in the company's business in different market areas. In 2022, Shanjin Optoelectronics produced a variety of ultra-thin, high-transmittance small and medium-sized polarizer high-end products, and successfully entered the high refresh rate gaming laptop market, breaking the monopoly of foreign manufacturers in this field.
In 2023, Shanjin Optoelectronics United CODA, CINNO and many manufacturers in the polarizer industry have launched the world's first polarizer industry blue book. Industry insiders said that driven by the leading effect and the collaborative cooperation between the upstream and downstream of the industrial chain, China's polarizer is accelerating the standardization process and aiming at the high ground of the global new display industry.
ANNA