Idemitsu Kosan Dissolves IZO Producing Subsidiary

Idemitsu Kosan announced on 18 March the firm dissolves its subsidiary, IS Electrode Materials (ISEM). ISEM started production and sale of indium-zinc-oxide (IZO) target materials in April 2005, which are used as transparent electrode materials for flat panel display (FPD). However, Sumitomo Metal Mining, another shareholder in ISEM, withdrew from ISEM in October 2007. Idemitsu Kosan was compelled to change its IZO business plan significantly only in 3 years.IZO was developed originally by Idemitsu Kosan. The firm commissioned sputtering target material makers to produce IZO at the beginning and established ISEM with Sumitomo Metal Mining in April 2005, 51% controlled by Idemitsu Kosan and 49% by Sumitomo Metal Mining.ISEM’s annual revenue was approximately 2.2 billion yen, even lower than originally planned 15 billion yen after 3 years. A negative factor was higher price of IZO than indium-tin-oxide (ITO), a major material for FPD transparent electrode.Idemitsu Kosan will continue IZO business by provision of licenses for IZO related patents to major sputtering target material makers such as Nippon Mining & Metals. Nippon Mining & Metals is the largest supplier of sputtering target materials, which has been commissioned IZO production by Idemitsu Kosan.