Abstract-The conventional Finite-Difference Time-Domain (FDTD) method with staggered Yee scheme does not easily allow including thin material layers, especially so if these layers are highly conductive. This paper proposes a novel subgridding technique for 2D problems, based on a Hybrid Implicit-Explicit (HIE) scheme, that efficiently copes with this problem. In the subgrid, the new method collocates field components such that the thin layer boundaries are defined unambiguously. Moreover, aspect ratios of more than a million do not impair the stability of the method and allow for very accurate predictions of the skin effect. The new method retains the Courant limit of the coarse Yee grid and is easily incorporated into existing FDTD codes. A number of illustrative examples, including scattering by a metal grating, demonstrate the accuracy and stability of the new method.