RUSNANO finalises investment in Plastic Logic
21 January 2011
Last November, EMTWorldWide reported that The Russian Corporation of Nanotechnologies (RUSNANO) and Plastic Logic had entered into an agreement to create Plastic Logic’s second volume production facility for its next-generation plastic electronic displays and establish a plastic electronics industry in Russia. (Plastic electronics production to commence in Russia)
And now, RUSNANO and Plastic Logic have finalised the details of RUSNANO’s investment. The project, which will total $700 million, includes building the world’s largest volume production factory for Plastic Logic’s next-generation plastic displays in Zelenograd, and aims to establish a commercial plastic electronics industry in Russia.
Plastic Logic has received an initial investment package of $300 million. Under the final agreement, RUSNANO is providing an initial investment of $150 million into the equity of Plastic Logic. The company’s lead investor, Oak Investment Partners, a multi-stage venture capital firm, is investing an additional $50 million as part of the project investment plan. In addition to the equity investments, RUSNANO will provide partial guarantees for debt financing in the region of $100 million.
Over the next few years, additional equity and debt will be raised, totalling approximately $400 million.
“We evaluated multiple locations and potential partners across the globe for our second factory. We determined Russia with RUSNANO as an investment partner was the best fit for our business,” said Plastic Logic CEO Richard Archuleta. “RUSNANO has demonstrated it is fully invested in our goal to commercialise plastic electronics. We are gratified by the RUSNANO investment package and the continued commitment of Oak Investment Partners in bringing this disruptive technology to market.”
RUSNANO Managing Director Georgy Kolpachev added: “Plastic Logic is one of the most promising new technology companies in Silicon Valley. This is an unprecedented investment of close to a billion dollars in the future of plastic electronics to help create one of the largest commercial centres for it in Russia. This investment signifies the potential that we see in the future of plastic electronics across a variety of commercial and consumer products; flexible plastic electronic displays will provide another major milestone in how people process information. Entering this new disruptive segment at the stage of its inception gives Russia a chance to win a leading position in the global market of future electronics.”
The Zelenograd factory, scheduled for production starting in 2013/2014, will have the capacity to produce hundreds of thousands of units of next-generation plastic electronics displays per month. Plastic Logic has said that it plans to employ in excess of 300 people at the new facility.
Zelenograd was a natural choice for the home of the company’s second and largest commercial plastic electronics display factory, according to Konrad Herre, Plastic Logic Vice President for Manufacturing, who led the site selection process. “Zelenograd is at the centre of the electronics, microelectronics and computer industry and is the equivalent of Silicon Valley in Russia. Zelenograd has invested in the development of a Special Economic Zone with an excellent infrastructure for high tech industry, and is home to the Moscow Institute of Electronic Technology (MIET), which gives us access to a highly educated and trained workforce.”
At the same time, Plastic Logic plans the continued investment in its first high-volume, state-of-the-art manufacturing facility in Dresden, Germany, which opened in 2008, as well as its technology R&D centre in Cambridge, England.
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