Merck KGaA Opens Liquid Crystal Technical Center in Korea

Merck¡¯s Second Location in Asia to Offer Local R&D, Production and Supply Services for Liquid Crystals

Press Release

Merck KGaA Opens Liquid Crystal Technical Center in Korea

Merck¡¯s Second Location in Asia to Offer Local R&D, Production and Supply Services for Liquid Crystals

Darmstadt, Germany, and Seoul, South Korea - Merck KGaA announced today that its South Korean subsidiary, Merck Advanced Technologies Ltd. (MAT), officially opened its new state-of-the-art Euro 10 million Liquid Crystal Technical Center in the Poseung Industrial Park, Pyongtaek, Gyonggi-do, an hour¡¯s drive south of Seoul.

The Liquid Crystal Technical Center develops and manufactures Liquid Crystal (LC) mixtures, a crucial component of Liquid Crystal Displays (LCD), and is the first LC manufacturing center in Korea. The Center will have an initial capacity of about 30 tons per year and has been designed for future expansion capabilities. The 6,500-square-meter facility is equipped with the most advanced technology with 33 employees who have extensive training in LC manufacturing processes, quality control and R&D. MAT will employ up to 50 by Jan. 2003.

As Korea is the home of the leading manufacturers of Thin Film Transistor (TFT) LCDs for notebooks and PC and TV monitors, Merck is determined to be closer to customers to ensure optimum communications, stable supplies and top service. To further strengthen the focus of the company¡¯s LC activities, MAT Ltd. was established in 2002 to operate the Liquid Crystal Technical Center.

Merck already is supplying LC mixtures to leading TFT-LCD manufacturers such as Samsung Electronics, LG Phillips LCD and Hydis. Together, these three Korean companies have more than a 40% share of the global TFT-LCD market. Merck is the world¡¯s leading manufacturer of Liquid Crystals, with sales of EUR 276 million in 2001. It also offers coated glass and ultra-pure process and functional chemicals to the LCD industry.

¡°There is no doubt that the worldwide demand for notebooks and mobile telephones using TFT-LCDs is steadily increasing and that the popularity of PC and TV monitors equipped with large LC displays is leading the dynamic development of the LC market,¡±
said Werner Pfeifer, President of Merck Korea. He pointed out that Merck has unique LCs that provide a wide viewing angle, fast response speed and the high brightness needed for advanced PC and TV monitor applications.

¡°As Korea is the leader in these fields, it is only natural that the leading and most innovative LC maker would also be here,¡± said Thomas Jacob, Manager of the Liquid Crystal Technical Center.

Background Information

The Government of Korea has identified the importance of the investment of Merck as an attractive contribution to the development of high technology in Korea. The realization of the investment within only 12 months was possible due to the professional and quick approval procedures of Government and Gyonggi-do authorities as well as the City of Pyongtaek.

LCDs are used in PC and TV monitors, notebooks, consumer electronic, CD-players, mobile phones and many other devises, most of which are major Korean export products.

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With more than 34,000 employees in 55 countries, the Merck Group generated sales of EUR 7.5 billion in 2001. Founded in 1668 in Darmstadt, Germany, the company aims to be a world leader within its core businesses of pharmaceuticals and chemicals. The Merck Group strongly believes the key to its long-term business success is innovative products created by entrepreneurial and talented employees. Merck groups its operating activities under Merck KGaA, in which the Merck family holds 74% and the remaining 26% is publicly traded. The former U.S. subsidiary, Merck & Co., has been a completely independent company since 1917.