Umicore has sold its indium tin oxide (ITO) sputtering target activity for large area coatings to its joint venture partner First Rare Materials Co Ltd, the parent company of the Vital Group, a Chinese producer of minor metals based products. 

As part of the transaction, First Rare Materials acquires full ownership of Umicore Vital Thin Film Technologies Co Ltd, the Chinese joint venture which was previously 60% owned by Umicore and 40% by First Rare Materials. The Optics and Electronics activity, part of Thin Film Products, is not part of this transaction and will be transferred to the business unit Electro-Optic Materials from 1 January 2018.

All manufacturing of ITO materials will take place in the production plant in Qingyuan, China and Umicore's ITO manufacturing operations in Providence, USA will be ceased by the end of 2017, the company says.

Costs related to the transaction and the closure of the Providence site are anticipated to amount to €14 million.

This story is reprinted from material from Umicorewith editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.