A fire broke out in Nippon Electric Korea Polarizer Factory! Relevant production impacts are still under investigation

Core tip: On October 5, Nitto Electric announced that its Korean subsidiary, which mainly produces polarizer products, had a fire, and the related production impact was still under investigation. However, as Nitton Electric's market share in the global polarizer market was not low, if the subsequent production capacity needs to be restored for a period of time, the other polarizer plants will have the opportunity to benefit from the transfer of orders, which will also help the market to warm up.
On October 5, Nisso Electric announced that its Korean subsidiary, which mainly produces polarizer products, had a fire, and the related production impact was still under investigation. However, as Nisso Electric's market share in the global polarizer market was not low, if the subsequent production capacity needs to be restored for a period of time, the other polarizer plants will have the opportunity to benefit from the transfer of orders, which will also help the market to warm up.
Nitto Electric has not announced the impact of the fire, but according to Japanese media reports, the factory in which the fire occurred mainly produces polarizers for electronic devices such as smart phones and tablet computers. Nitto Electric and Sumitomo Chemical (4005-JP) are currently the top two polarizer factories in the world. If Nitto Electric's fire has a large impact, it will affect the supply and demand of the industry.
Other polarizer factories in the world also include Shanjin, which was established by Continental Shanshan Group after acquiring LG's chemical polarizer business in 2020, and Taichang Ming Base Material (8215-TW), Chengmeicai (4960-TW), Lite (3051-TW), etc. However, it is reported that the overlap between Taichang and Nippon's industrial affairs is not high, so the subsequent effects need to be observed.
However, the display industry is still at a relatively low level due to the impact of the global economic boom. The utilization rate of the polarizer factory has generally declined. At the same time, in the face of the panel factory customers' demand for price reduction, the short-term operation performance is relatively under pressure; In September, the revenue of base materials showed a double drop, falling to 1.11 billion yuan in a single month, with a monthly decrease of 12.2% and an annual increase of 15.3%. In the third quarter, the revenue was 3.647 billion yuan, with a quarterly decrease of 11.3% and an annual decrease of 9.9%. The cumulative revenue in the first three quarters was 11.922 billion yuan, with an annual decrease of 3.9%.
Chengmei and Lite have not announced the revenue results of September yet. However, Chengmei recently said that due to the continued weakness of the panel market, it is expected that the industrial inventory will be adjusted at least until the end of the year, and the price may still decline slightly. It is estimated that the crop growth rate in the second half of the year will drop from 95% in the first half of the year to 50-60%.
A fire alarm broke out in the factory of Korea OpticalHighTech, a Korean subsidiary of Nippon Electric, located in Guiwei City, North Gyeongsang, South Korea on the evening of the 4th. Nippon Electric announced that it would cooperate with the local fire department to investigate the cause of the accident. The fire did not cause casualties to employees and employees of the cooperative factory. As for the impact on production and operation, it is still under investigation.