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AVECIA TO ACQUIRE
FULL OWNERSHIP OF COVION ORGANIC SEMICONDUCTORS GMBH
Avecia announced today that it is to acquire the
remaining 85% equity stake in Covion Organic Semiconductors Gmbh
from its joint venture partner Celanese Ventures. Financial details
of the transaction - which will be completed in December, 2001 -
were not disclosed.
Based in Frankfurt, Germany Covion manufactures light emitting
polymers for both the flat panel display and opto-electronic
sectors and is a recognised technology leader. The company has a
strong pipeline of joint development projects with over 25 leading
equipment manufacturers in the electronic displays industry. Lead
applications are in mobile 'phones and other consumer electronics -
such as laptops, car radios, digital cameras etc..
Covion currently employs 50 staff and will continue to operate as
an independent business under the Covion brand, reporting through
Avecia's Electronic Materials segment.
Avecia CEO Jeremy Scudamore said: "The full acquisition of Covion
represents a further step in Avecia's strategy to build world
leading positions in high value, high technology sectors. Covion
has a strong reputation in the industry and we are delighted to be
taking the business forward".
Covion is the only company to manufacture and market both small
molecule and polymer based organic light emitting diode (OLED)
materials and technologies at commercial scale.
Compared to LCD technology, OLEDs are simpler, give higher
brightness, resolution and efficiency, a better viewing angle - and
have lower power consumption. The OLED display market is projected
to grow from today's US $84m. to US $1.6bn. by 2007.
Future applications of OLED technology could combine with ink jet
printing techniques to create large format electronic displays.
Within a few years, the combination is also expected to deliver
low-cost "plastic electronics" - with polymers as the "ink" for
organic transistor circuits, printed by ink jet technology.
"Avecia is strongly placed to be a world leader in these exciting
developments", said Mr. Scudamore. "Through our ink jet printing
and now enlarged displays business, Avecia has the unique advantage
of technology leadership in both synthesis of high purity chemicals
and in polymer sciences".
_________________________________________________
Notes for Editors:
Covion's origins date back to 1992 when they were part of Hoechst
Corporate Research department looking into polymeric light emitting
materials. This later became Aventis Research and Technologies.
Highly temperature stable small molecule materials followed in 1994
- the spiro concept - and what was to become Covion's Frankfurt
manufacturing facility began pilot scale operation in 1996. A key
research breakthrough followed in 1998, with the extension of OLED
service lifetimes through minimisation of polymer conjugation
defects.
Covion Organic Semiconductors Gmbh was created by Aventis in April
1999, with a minority interest being taken by Zeneca Specialties,
which became Avecia in mid-1999. The Aventis majority interest
passed to Celanese Ventures in 2000.
In 2000, Covion completed a US $5m. capacity extension programme at
its manufacturing centre in Frankfurt.d as a pilot plant in
1996, the facility can now make a solution volume of over 40,000
litres of conjugated polymers annually.
Covion is led by Dr. Hermann Schenk, who joined Hoechst AG in 1989
and headed its LEO (Light Emitting Organics) project from its
inception, in 1992. He was appointed Managing Director of Covion on
its formation in early 1999.
Avecia is Europe's largest privately owned specialty chemicals
company created in June 1999 through the chemical industry's
largest ever private investment buyout.
The company operates in five business segments, delivering
technical and service differentiation for customers in a wide range
of industries. These include healthcare, agrochemicals, coatings,
graphic arts, leather, imaging, mining, plastics, biotechnology,
inks and automotive.
For further information contact:
Andrew Smalley
Tel: + 44 (0)161 721 2441
Mobile: + 44 (0)7802 773604
andrew.smalley
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