KYOTO -- Kyocera will shut down an LCD factory in China's Jiangsu Province this November on weak prospects for growth in the market for an older type of display used in automobiles.
The plant in Zhangjiagang was opened in 1997 by Optrex, a Japanese liquid crystal display maker that Kyocera acquired in 2012. It churns out roughly 3 billion yen ($28 million) a year of supertwist nematic displays.
Kyocera intends to liquidate the local unit after closing the plant. The 740 or so workers there will be let go, and production of automotive displays will be consolidated at facilities in Dongguan, Guangdong Province. Kyocera does not yet have plans for the Zhangjiagang factory or the land it sits on.
In addition to automotive displays, Kyocera makes LCDs for machines used in factories and other applications. These products are manufactured in Dongguan as well as at Japanese and Thai plants, but they face stiff competition from brands based in China, South Korea and elsewhere.
Kyocera President Hideo Tanimoto has indicated that production will be scaled down in the display business.