Taipei, July 5, 2006 (CENS)--Sinkong Synthetic Fibers, Taiwan`s leading textile manufacturer, recently announced that the company had decided to spend NT$1.212 billion (US$36.73 million at US$1 = NT$33) to purchase LOFO High Tech Film, a Germany-based leading optical film firm that has specialized in producing solvent cast film from various polymers for more than 70 years.

T. S. Wu, chairman of Sinkong Synthetic, is to leave for Germany to officially ink the merger contract with the German firm. Wu disclosed that LOFO is one of the world`s leading optical thin film making companies. Because Sinkong plans to expand its operations into the optical film sector, the merger provides a good chance for Sinkong to obtain film-making technologies from LOFO, which boasts annual production of 30 million square feet of optical thin film.

Wu added that Taiwan is now one of the world`s leading manufacturing bases for liquid crystal display (LCD) panels, and Sinkong intends to produce optical thin films for LCD panel makers. He indicated that capital, talent, and technology are three pivotal factors for entering the optical film industry. Sinkong has had no problems in obtaining capital and talent in Taiwan, and will receive the necessary technology from LOFO after the merger is complete.

After receiving the technology from LOFO, Sinkong plans to establish a plant here to turn out tri-acetyl-cellulose (TAC) films, the key material for polarizers for thin film transistor (TFT)-LCD panels. The required investment for the plant is estimated at around NT$10 billion (US$303.03 million), and many domestic enterprises have expressed interest in joining the venture. If every thing goes smoothly, the construction of the projected plant is expected to begin early next year, and the facility is scheduled to begin operating in the second half of 2008. At that time, the plant will be the first of its kind in Taiwan that fabricates TAC films.

Last year Sinkong raked in revenue of NT$21.1 billion (US$639.39 million), a figure that is very likely to jump if the company can successfully enter the optical thin film market in the near future.
(by Judy)