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Plastic Logic shutters US offices, gets out of making its own e-readers
Plastic Logic has something of a rollercoaster history, having had to drop the QUE proReader before it even shipped and getting a $700 million cash injection that ultimately swung its attention to Russian schoolchildren. Unfortunately, the UK company's dreams of a self-branded e-reader are closing down along with its US branch. About 40 jobs are being cut in Mountain View, California, along with a smaller amount at its still-active British, German and Russian offices. The reduced headcount swings the focus to supplying e-paper screens to other companies, several of which are currently in talks. We're never fans of job cuts, but there is a silver lining to this cloud: the company's new flexible color e-reader screen could show up in more devices than it would have otherwise.
Plastic Logic granted a second life, scores trial in Russian schools
Poor Plastic Logic, one of the early innovators and hype builders in the e-reader race, has never been able to get its act together. But, following an initial investment of $150 million from Russian firm Rusnano in January, it seems the company has finally found a home for its beleaguered readers. After demoing the units for Prime Minister Vladimir Putin, the new investors secured a deal for 1,000 of the Que descendents to be given a trial in Russian schools. Perhaps redemption will come for Plastic Logic by succeeding where the Kindle was deemed such an absolute failure.
Plastic Logic receives massive $700 million Russian investment
Who can forget the Plastic Logic Que proReader -- a textbook study on the vaporous gadget. Start with an incredible (but truthful) claim to have developed plastic semiconductors that could be used to fabricate flexible e-reader displays. Then follow up the breakthrough with the all-important consumer tease: an amazing (for the time) 8.5 x 11-inch e-reader with a gesture-based UI that would launch in the first half of 2009. Unfortunately, the Que never shipped and was ultimately canceled, partly because of reliability issues associated with manufacturing those early Que displays and partly because of the launch of a rather disruptive Apple tablet you might have read about. Fast forward to today and we've got the state-owned Russian Corporation of Nanotechnologies (Rusnano) announcing a $700 million investment in the US-based Plastic Logic Inc. Why? Are you listening? Plastics. Here's how this "unprecedented" investment was described by Georgy Kolpachev, Rusnano's managing director: "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 global market of future electronics." The investment will be used to pay off Plastic Logic's debt including a $50 million loan the company took out after approaching financial collapse. The rest will be used for a second plastic electronics factory in Russia (a sister to the Dresden Germany plant) which is expected to start production in 2013 or 2014. Update: Press release added after the break offering more details on the "world's largest commercial plastic electronics factory" that will be capable of producing hundreds of thousands of "next-generation plastic electronics displays" per month.
Plastic Logic kills QUE, 'shifts focus' to second-generation ProReader
And just like that, with the swing of a virtual axe, she's all dead and buried. Plastic Logic has been stuck in a world of perpetual delays ever since wowing the universe with its QUE ProReader at CES, and rather than delaying it again, the company is simply cutting its losses and moving on. To quote CEO Richard Archuleta: "We recognize the market has dramatically changed, and with the product delays we have experienced, it no longer make sense for us to move forward with our first generation electronic reading product." To that end, the company plans to "shift its focus to bring to market a second-generation ProReader plastic electronics-based product," but absolutely no details regarding form factor, pricing or an estimated ship date are given. Wilder still, those rumors about a company sale have coincidentally (or not?) flared up again, with the Financial Times stating this go 'round that Plastic Logic could sell a "significant stake" of itself to Rusnano, a Russian state-owned nanotechnology corporation. We're told that the two are currently "in discussions," and that if a deal is reached, Plastic Logic's production facility for this elusive next-gen product would have to be based in Russia. We can't say we're completely shocked at the outcome here, but we're man enough to shed a tear at our loss. Rest easy, QUE -- at least we had our times.
