(By Balaseshan) Specialty chemicals maker Albemarle Corp. (NYSE:ALB) said it will expand its facility in Yeosu, Korea to manufacture electronic-grade metal organics.
The Yeosu facility, which is currently in the final stages of construction, will produce commercial quantities of finished catalysts and components used in the polymer industry.
The additional manufacturing capacity that has been authorized by the board will be dedicated to producing Albemarle's PureGrowth products, including high purity trimethyl gallium (TMG), triethyl gallium (TEG) and trimethyl aluminum (TMA).
These products are used in metal organic chemical vapor deposition (MOCVD), a process used to manufacture chips for semiconductors, LEDs, and optoelectronic devices.
The Korean expansion will complement Albemarle's existing capacity for these products, as well as trimethyl indium (TMI), at its facility in Baton Rouge, Louisiana.
Property for the expansion has been acquired and infrastructure plans have already been finalized and approved. The project is slated for completion in 2013.
"Over 80% of the global demand for LED products is in Asia. Expansion of our Korea facility will ensure security of supply in this high-growth region while reducing transportation risks. These state-of-the-art facilities will also allow us to consistently maintain the high purity standards required of electronic-grade metal organics," said Jenny Hebert, Global Product Manager for Electronic Materials at Albemarle.
Albemarle's Performance Catalyst Solutions division, a segment of its Catalyst global business unit, delivers high performance catalyst solutions through a finished catalyst product portfolio. The division is comprised of three business units: Polymer Catalysts, Chemical Catalyst, and Electronic Materials.
ALB is trading up 1.51% at $60.00 on Tuesday. The stock has been trading between $38.02 and $68.51 for the past 52 weeks.