Sumitomo Chemical Withdraws Chinese Plant Plans - Nikkei

Sumitomo Chemical Co Ltd withdrew its plan to build an LCD panel material plant in China amid falling demand for LCD televisions, the Nikkei reported.

The company now plans to invest in developing OEL (organic electroluminescence) panel materials - which consume less power and offer sharper images - and in Petro Rabigh complex, a large-scale petrochemical joint venture in Saudi Arabia, the business daily said.

But with demand for small and midsize LCD panels expected to continue growing amid the increasing popularity of smartphones and other portable devices, Sumitomo has decided to invest more than 1 billion yen ($12.8 million) this fall to boost the output capacity at its South Korean plant about 6 percent, the Nikkei reported.