Notice Regarding Withdrawal from the LC Materials Business and the Transfer of Related Intellectual Property

TOKYO—March 26, 2024—DIC Corporation will withdraw from the liquid crystal (LC) materials business, accounted for in the Color & Display segment, by the end of December, 2024. Concurrent with the withdrawal, it has resolved to transfer ownership of the intellectual property of this business to Shijiazhuang Chengzhi Yonghua Display Materials Co., Ltd. (Slichem), based in the People’s Republic of China (PRC).

Reason for Withdrawal from the Business

DIC commenced the production and sale of LCs in 1973. Since then, the Company has worked to grow this business, operating primarily as a supplier of LCs for use in displays. However, the business environment has deteriorated in recent years as a consequence of multiple factors, including intensifying competition with overseas manufacturers. In the DIC Vision 2030 long-term management plan, announced in February 2022, the Company identified thin-film transistor (TFT) LCs, its core LC materials product, as being in need of structural reform and has explored drastic measures to improve the value of the LC materials business.

Despite careful deliberation, the persistently challenging business environment has led the Company to determine that continuing the business would not be feasible, prompting the decision to withdraw. Going forward, DIC will strive to enhance its corporate value by prioritizing the optimal allocation of management resources and ensuring such resources are concentrated in growth businesses with the potential for both swift viability and outstanding profitability.

Overview of Withdrawal

  • Products: LC materials, including TFT LCs and LCs for passive displays
  • Locations: Part of DIC’s Saitama Plant (Saitama, Japan) and part of two subsidiaries in the PRC (Qingdao DIC Finechemicals Co., Ltd., and Qingdao DIC Liquid Crystal Co., Ltd.)
  • Date of completion: By the end of December, 2024 (scheduled)

Information on the Transfer of Intellectual Property

Negotiations are ongoing for the transfer of certain components and assets of the LC materials business from which the Company will withdraw to third parties, on the understanding that operations will be maintained. On March 24, 2024, an agreement was reached to transfer the intellectual property of this business to Slichem. As a result of this transfer, DIC expects to record capital gains, as well as to incur expenses related to the closure of facilities, among others, once transfer procedures are completed. Details are currently being finalized. Should any matters arise that require disclosure, the Company will promptly issue notification.

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About Sun Chemical
Sun Chemical, a member of the DIC Group, is a leading producer of packaging and graphic solutions, color and display technologies, functional products, electronic materials, and products for the automotive and healthcare industries. Together with DIC, Sun Chemical is continuously working to promote and develop sustainable solutions to exceed customer expectations and better the world around us. With combined annual sales of more than $8.5 billion and 22,000+ employees worldwide, the DIC Group companies support a diverse collection of global customers.

Sun Chemical Corporation is a subsidiary of Sun Chemical Group Coöperatief U.A., the Netherlands, and is headquartered in Parsippany, New Jersey, U.S.A. For more information, please visit our website at or connect with us on LinkedIn or Instagram.



Heather Buchholz
Sun Chemical
Tel +1 708 236 3779
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Matthew Parry
Tel: +1 315 413 4318
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