Rohm and Haas Company and SKC Agree to Form Joint Venture Serving the Flat Panel Display Industry
PHILADELPHIA & SEOUL, Korea August 14, 2007 -- Rohm and Haas Company (NYSE:ROH) and SKC, Incorporated, have announced the formation of a joint venture that will develop, manufacture and market advanced optical and functional films used in the flat panel display industry. The joint venture combines the strength of Rohm and Haas and SKC to provide a broad portfolio of unique films used in today's most advanced liquid crystal and plasma displays.
As part of the new joint venture arrangement, SKC will spin-off its Display Technologies business into a separate legal entity. Rohm and Haas will invest to become a 51 percent owner in the new company. Closing of this transaction is expected to occur in the fourth quarter of 2007 pending approval by regulatory authorities.
"Today's announcement is the next major step in building our Flat Panel Display Technologies business," said Dr. Yi Hyon Paik, vice president and business group director, Rohm and Haas Electronic Materials. "Our current Flat Panel Display business, which includes process chemicals and optical display films recently acquired from Eastman Kodak's Light Management Films unit, features a deep product pipeline, solid R&D, and a broad intellectual property portfolio. SKC brings a strong and respected presence in the Asia flat panel markets, as well as outstanding manufacturing infrastructure, applications engineering, and customer intimacy," Paik said.
"We're pleased to be entering into an exciting, new future with SKC and Rohm and Haas," said Mr. Jang Suk Park, president, SKC, Incorporated. "This joint venture brings the strength of two great companies under one roof. Rohm and Haas Electronic Materials has an excellent reputation for materials innovation and research excellence. Their product pipeline is impressive. SKC also brings a broad line-up of film technologies to the new JV, as well as established manufacturing capability and customer relationships throughout Asia," Park said. "We are looking forward to working with Rohm and Haas over the coming months to launch and introduce this new joint venture to the flat panel industry."
Rohm and Haas will have a controlling interest in the JV, which will be headquartered in Korea. Sales are projected to be approximately $300 million (U.S.) in the joint venture's first year of operation. Rohm and Haas's investment in the JV is expected to be approximately $190 million. When combined with the acquisition of Eastman Kodak Company's Light Management Films business earlier this year, Rohm and Haas will have invested approximately $230 million to build a major new business unit-Flat Panel Display Technologies-within its Electronic Materials group. Overall sales of the new business unit are expected to be approximately $350 million in 2008.
Dr. Pierre Brondeau, Rohm and Haas executive vice president and business group executive, Electronic Materials and Specialty Materials, said the JV is an important addition to the company's growing Electronic Materials franchise.
"We have traditionally performed exceedingly well in industries and markets that place a high value on innovation. That's what we do best, and it's what the flat panel industry will continue to need in the face of increasing demand for displays that are brighter, more vibrant, larger, and more energy efficient. The new joint venture combines two great companies, each complementing the other," Brondeau added. "It represents another critical element in aggressively expanding Rohm and Haas Electronic Materials and our presence in the high growth flat panel industry."
Products developed, manufactured and marketed by the joint venture will include a suite of specialty display films for liquid crystal (LCD) and plasma displays. The JV also will include dispersions of pigments, key ingredients used to manufacture LCD color filter plates. In addition to these films and materials, Rohm and Haas's Flat Panel Display Technologies business develops and manufactures a variety of products for the display industry, including TFT photoresists and color filter chrome patterning.
About Rohm and Haas Company
Leading the way since 1909, Rohm and Haas is a global pioneer in the creation and development of innovative technologies and solutions for the specialty materials industry. The company's technologies are found in a wide range of markets including: Building and Construction, Electronics, Food and Retail, Household and Personal Care, Industrial Process, Packaging, Paper, Transportation and Water. Our innovative technologies and solutions help to improve life everyday, around the world. Based in Philadelphia, PA, the company generated annual sales of approximately $8.2 billion in 2006. Visit www.rohmhaas.com for more information.
About Rohm and Haas Electronic Materials
Rohm and Haas Electronic Materials develops and delivers innovative material solutions and processes to the electronic and optoelectronic industries. Focused on the circuit board, semiconductor manufacturing, advanced packaging, and flat panel display industries, its products and technologies are integral elements in electronic devices around the world. Additional information about Rohm and Haas Electronic Materials can be found at www.rohmhaas.com.
About SKC
SKC is a member of SK business group, which runs energy, chemicals, telecommunications, trading and services businesses and recorded annual sales of $75.8 billion in 2006. The company specializes in PO(Propylene Oxide), PET(polyester) films and display materials and is rapidly growing into a manufacturer of cutting-edge materials based on the technologies and know-how it has accumulated over the last 31 years. Based in Korea, the company has 16 business sites worldwide, including a PET film factory in Georgia, USA. For more information about SKC visit www.skc.co.kr.
Analyst Conference Call-Rohm and Haas Company will host a teleconference and webcast to review details of the announced joint venture with SKC, Inc., on Thursday, August 16, 2007 at 10 a.m. (Eastern Time). Interested parties are asked to dial-in approximately 10 minutes before the call begins at the following numbers:
U.S. Participants: 888-802-2225
International Participants: 913-312-1268
Live internet access to the call will be available (audio and slides) through the Investors section of the Company's website: www.rohmhaas.com.
A replay of the call will be available for five days beginning at 1 p.m. (Eastern Time) on August 16, 2007. To access the replay, call 888-203-1112 (U.S.) or 719-457-0820 (International), and use replay passcode 7247702.
