LG Display agrees to sell Chinese LCD factory for $1.5 billion
South Korean LG Display announced on Thursday that it has agreed to sell its stake in a large LCD factory in Guangzhou, China, to TCL's LCD division CSOT for 10.8 billion yuan (1.54 billion US dollars).
The Apple supplier stated in a statement that the sale includes LG Display's 80% stake in its large LCD panel factory and 100% stake in its LCD module factory, and is expected to be completed by March 2025.
LG Display stated that this move aims to better focus its business on the organic light-emitting diode (OLED) business, which is more competitive in this field compared to the saturated LCD market.
LG Display stated in a statement, "We plan to focus more on our OLED business to enhance our competitiveness and establish a stable profit base. In addition, we expect the funds generated from the sale of the (factory) to help strengthen our financial stability
After this sale, LG Display will no longer produce LCD panels in China. The company will continue to produce large-sized OLED panels with higher profit margins in China.
Analysts say that this sale will help LG Display's financial structure, as the company reported losses for several quarters last year, mainly due to weakened demand for devices that use display panels.
LG Display stated that this move aims to better focus its business on the organic light-emitting diode (OLED) business, which is more competitive in this field compared to the saturated LCD market.
LG Display stated in a statement, "We plan to focus more on our OLED business to enhance our competitiveness and establish a stable profit base. In addition, we expect the funds generated from the sale of the (factory) to help strengthen our financial stability
After this sale, LG Display will no longer produce LCD panels in China. The company will continue to produce large-sized OLED panels with higher profit margins in China.
Analysts say that this sale will help LG Display's financial structure, as the company reported losses for several quarters last year, mainly due to weakened demand for devices that use display panels.