Japan’s largest producer of protective film for display panels Toray Group has opened a US$41 million plant in the Southern Taiwan Science Park in Greater Kaohsiung’s Lujhu. The capacity of 17,000 tonnes/year of Toretec PET film is to meet growing demand in the LCD television and display panel industry.

The firm says that demand for surface protection film is rapidly increasing across Asia led by demand in luminance improvement films and light guide plates. The firm has been fully utilising its production capacity against the backdrop of robust global demand, but further increase in capacity became imperative as supplies have not been keeping pace with demand.

It selected Taiwan because of its reduced corporate tax rate, as well as the Economic Cooperation Framework Agreement the island has with mainland China, which it said will boost Taiwanese competitiveness.