Optimistic about the LCD TV market outlook, Japanese LCD (Liquid Crystal Display) film maker Fuji Photo has revealed a more detailed expansion plan for its TAC business. The plan discloses a decision to build a third TAC (Triacetyl Cellulose) film plant in Kumamoto prefecture, southern Japan. 100 billion yen (US$940 million; US$1=106.4 yen) has been allocated to the establishment of this TAC film plant, for which construction will start in 2005, and mass production is slated to begin by the end of 2006.

 

Initial annual output of the new factory is set at 50 million square meters, however, its output will be expanded in stages, to reach full capacity of 300 million square meters by 2010. Plans are made to recruit a workforce of 500 for the plant.

 

Fuji Photo's two other TAC film plants have a combined annual capacity of 180 million square meters, and this figure is anticipated to increase to 280 million square meters by 2004. Coupled with the new plant's production, Fuji Photo's three TAC film factories in Japan are likely to reach a capacity of 600 million square meters by 2010, tripling its current output, and adding the company's total investment in the TAC film business to 150 billion yen (US$1.4 billion) in the next four years.

 

TAC film is a key component for polarization films, used in TFT LCD panel production. The presently tight supply of TAC films is moving both Fuji Photo and sole rival Konica to both plunge into capacity expansion.