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CPL was mostly a stand-alone business, making it easy to
sell, and was profitable, making it attractive to 3M. Sales
of projection lenses for CRT-based PTV systems to customers
such as Hitachi, Mitsubishi Electric and Sony have been
growing at about 10% for the last few years, rising steadily
from about $150M in 1999 to an expected $260M for 2002.
In 2001, CPL invested $100M to expand its projection lens
production capacity. "That turned out to be a very
good move," notes CPL director of sales and marketing
for microdisplay-based products Chris Nitz. "Demand
has been significant and the projection market would have
been supply constrained if we had not made this investment
in capacity."
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Nitz says it will take some time to figure out how CPL will fit
into 3M's Optical Systems Division. He sees CPL bringing several
key strengths to the acquisition, however. They include strong
design and manufacturing expertise in projection lenses, core
expertise in engines using multiple technologies, and access to
a broadened customer base.
"We are all very excited about the acquisition and can see
no real negatives," says Nitz. "3M is a great company,
and we think they will invest in the areas that will help grow
our business."
So how will 3M benefit from the acquisition? "Adding CPL
technology for rear-projection televisions to 3M's full spectrum
of display technologies enhances our business and will accelerate
our growth in the current and next-generation consumer television
applications," says Andy Wong, division vice president, 3M
Optical Systems Division. "Lens systems for large-screen,
rear-projection televisions are a great complement to our strong
optical film capabilities, which are well suited to the emerging
consumer LCD television segment."
3M's expertise in display technology is reflected in its line
of Vikuiti brand light management products, which includes proprietary
microreplicated and multi-layer display enhancement films for
applications in electronic displays, such as LCD televisions,
mobile phones, desktop monitors and notebook computers. 3M also
supplies touch screens and systems, high-performance projection
screens and precision optical components for a wide range of display
applications.
In addition, the Optical Systems Division is engaged in projection
component development activities, including a nearly 1000-layer
PBS design that could be a bit hit in LCOS-based systems (see
Projection Supply Chain Report - Autumn 2002). Enhancing the engine
development efforts and adding lens expertise to the 3M effort
are clear benefits, as 3M hopes to grow the projection components
business into a major revenue stream for the company.
In fact, 3M states that it believes display components represent
a multibillion-dollar growth opportunity. DVDs and high-definition
televisions (HDTVs) are driving the growth in this industry as
more consumers purchase large-screen, rear-projection TVs to create
a home theater experience. This new thrust into RPTVs will complement
activities in big-screen LCD TVs and increase the 3M content in
the RPTV's bill of materials.
Employing approximately 1500 people, Corning Precision Lens currently
supplies customers globally from its headquarters in Cincinnati,
Ohio. On Sept. 18, Corning Precision Lens announced plans to expand
its presence in China to take advantage of this emerging market.
China is the world's second largest and fastest-growing geographic
market for rear-projection televisions.
3M, Matt Ginter, 651-733-8206
Corning Incorporated, Ken Sofio, 607-974-7705
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