Solvay has agreed to sell most of its organic light emitting diode (OLED) patent portfolio to Japan’s Nissan Chemical Industries for an undisclosed sum. The patents are related to the production of soluble HIL and HTL materials. The sale follows a strategic analysis of the organic electronics market that the Belgian chemical producer said showed new display technologies being delayed.

As a consequence, Solvay, which gained several OLED activities with the acquisition of US technology company Plextronics in 2014, said it has decided to stop its research activities in this area and has started a value assessment of its related patent portfolio. The company added that it will continue to transfer its patents and technologies and use its resources for other research programs instead.

Solvay’s move is a sign that the OLED market is consolidating. The Belgian player’s exit follows BASF’s sale of its OLED intellectual property to UDC Ireland in June of this year after stopping its research activities at the end of 2015. OLED’s superior image quality have gained much interest for use in digital displays, and Nissan said applications are expected to expand.