South Korean supplier Avaco is making bigger foray into China by signing a deal to provide equipment to Chinese display maker HKC, with which it first began to do business just this year, the company said in a disclosure on Nov. 7.
The deal is worth 16 billion won, and it’s with one of HKC’s local corporations – Beihai Huike Optoelectronic Display. Avaco will be supplying mainly polarizer attachers to the firm’s LCD module plants.
Avaco will be supplying the same equipment to HKC’s Gen-8.6 LCD production lines in Sichuan Province, which are to go into operation in March 2020. “It hasn’t been long that we began relations with HKC, but we expect to keep working together in more areas,” said an Avaco official, adding that the firm is working hard to make progress in China.
The local supplier is currently looking for opportunities to supply to the H5 lines in Hunan 성, where HKC began building facilities for its 8.6-Gen large-sized OLED panels in September this year.
In the third quarter of this year, Avaco’s accumulated earnings stood at 177.3 billion won, while its operating profit reached 19.6 billion won. Annual sales are estimated to be of a similar amount as last year’s 243.4 billion won.
HKC was established in 2001. In addition to display-making facilities, it also produces TVs for other brands. According to Chinese market research firm AVC, HKC shipped a total of 3.2 million TVs in the first half of this year.
HKC currently mass-produces 8.6-Gen LCD lines from two locales in China. It is expected to delay the construction of its newly-planned H3 Gen-11 LCD production line. Market research firm IHS Markit said HKC shipped 5.31 million LCD panels for TVs in the Q3. During the same period, BOE had shipped 13.72 million units to record the biggest amount in the market.
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