Hitachi Chemical : Notice Regarding the Business Transfer of the Optically Clear Adhesive Film "FINESET" for Touch Panels

December 22, 2016
Hitachi Chemical Co., Ltd.

Hitachi Chemical Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President and CEO: Hisashi Maruyama; hereinafter 'Hitachi Chemical') announces the business transfer of the optically clear adhesive film 'FINESET' for touch panels to ShangHai AVIC New Materials Co.,Ltd. (hereinafter 'ShangHai AVIC'), a company newly established by AVIC International Holding Corporation (hereinafter 'AVIC INTL') in China, effective January 1, 2017.
Hitachi Chemical will shift its management resources for 'FINESET' and focus on the early launch of new products for touch panels and other displays, such as transparent conductive transfer film, to expand its high functional materials business.

1. Purpose of the Transfer

As part of its high functional materials business, Hitachi Chemical is developing various materials for displays and touch panels, among which is 'FINESET,' a optically clear adhesive film that improves the visibility of touch panels. In recent years, with the lower price of this film used for smartphones, tablets and computers, the market environment surrounding the functional materials business has been changing significantly.
Against this backdrop, Hitachi Chemical received an offer from ShangHai AVIC to take over the manufacture and sales of 'FINESET' through the transfer of the film's technology and manufacturing equipment owned by Hitachi Chemical. ShangHai AVIC is aiming to further strengthen its business by taking advantage of its cost competitive edge to boost its lineup of display-related material products.
In line with promoting a business portfolio strategy for redistributing its management resources to promising business fields, Hitachi Chemical has decided to accept the offer and transfer its 'FINESET' film business to ShangHai AVIC. In the future, Hitachi Chemical will focus on the early launch of new products for displays, including touch panels, a shift intended to contribute to the expansion of its high function materials business.

2. Outline of the Transfer

(1) Scope of the business subject to the transfer

• Patent and trademark rights regarding the optically clear adhesive film 'FINESET' reserved by Hitachi Chemical
• Manufacturing technology and equipment of Hitachi Chemical's 'FINESET'

(2) Transfer date

January 1, 2017

3. Overview of ShangHai AVIC New Materials Co.,Ltd

Name	ShangHai AVIC New Materials Co.,Ltd
Principal lines of business	Manufacture and sales of optically clear adhesive film
Address	Room 308, Building 6, SKY SOHO, No. 968 Jinzhong Road, Shanghai, China
Name of representative	Yang Zhaoguo
Capital	50 million Chinese yuan (after completing the capital increase procedure)
Number of employees	25 (as of December 1, 2016)