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Shinsung E&G wins $37mn display line equipment deal from China

2018.04.13 13:39:43 | 2018.04.13 15:39:09
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South Korea’s Shinsung E&G Co. announced Thursday that it has signed a contract worth 39.8 billion won ($37.2 million) with China’s Mianyang BOE Optoelectronics Technology to supply its automated display designing and manufacturing systems.

Earlier in January, the company also inked a 93 billion won deal with China’s Shenzen China Star Optoelectronics Technology Co. to provide its display making equipment, and it expects to obtain more similar orders from Chinese customers onwards because the Chinese display industry is actively expanding facilities to meet growing demand for large-sized TVs in the country.

“Chinese firms are expected to bump up facility investments as demand for TVs with screens larger than 50 inches is rising,” an official from the company said. “We will focus on the Chinese market as chip-making facility investment in the country is also projected to reach more than $30 billion by 2019.”

Shinsung E&G engages in display manufacturing equipment and solar energy businesses. It also runs clean room equipment manufacturing facilities in Yongin, Gyeonggi Province in Korea and Suzhou in China. It has recently spun off its factory automation business as an independent subsidiary to focus more on China’s display market.

The latest deal value accounts for almost 4 percent of the company’s consolidated sales in last year. In 2017, Shinsung E&G recorded the largest-ever sales of 990.5 billion won, up 356 percent from the previous year, thanks to its business consolidation carried out in December 2016. However, it posted an operating loss of 5.6 billion won as its core solar business was hit hard by falling solar cell prices and unfavorable currency conditions.

Shares of Kospi-listed Shinsung E&G ended Friday at 1,655 won, unchanged from the previous session.

By Song Min-geun and Choi Mira

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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