Japan's Chisso has started constructing a new liquid crystal blend facility in the Tainan Science Park in Taiwan to meet the island's ever increasing demand for LCDs and other related products.

Scheduled for completion in September 2006, the plant will use only one type of liquid crystal, which is imported from Japan, and produce custom blend products matching the needs of local users.

Chisso has decided to set up the plant in Taiwan in order to expedite direct contact with the users, increase production capacity for and provide technical services to users, as well as increase cost competitiveness.

Chisso has already begun commercial production of alignment film and overcoat at a new plant in Pyeongtaek, Kyonggi-Do, South Korea. Once the new plant is up and running in Taiwan, the company will be able to establish itself as a comprehensive liquid crystal product supplier in Asia.

Investment in plant and equipment in Taiwan and Korea will reach a combined total of US$41 million.