LG Display to Sell Chinese LCD Plant to TCL's CSOT for US$1.5 Billion
- tech360.tv
- Sep 27, 2024
- 2 min read
LG Display agrees to sell its stake in a Chinese LCD plant to TCL's CSOT for $1.54 billion. The sale includes LG Display's 80% stake in a large LCD panel plant and 100% of its LCD module plant. LG Display aims to strengthen its focus on OLED technology for enhanced competitiveness and stable profits.
The sale includes LG Display's 80% stake in its large LCD panel plant and 100% of its LCD module plant, with the transaction expected to be finalised by March 2025, as stated by the Apple supplier.
LG Display's decision to divest from the Chinese LCD plant is part of its strategic shift towards focusing more on its organic light-emitting diode (OLED) operations. The company highlighted its intention to enhance business competitiveness and establish stable profit bases by concentrating on OLED technology, where it holds a stronger position compared to the saturated LCD market.
In a statement, LG Display expressed its strategic direction, saying, "We plans to focus more on the OLED business to enhance our business competitiveness and build stable profit bases. Also, we expect capital from the (plant) sale to help strengthen our financial stability" This move signifies LG Display's commitment to adapting to market demands and aligning its operations with its core strengths.
Following the sale, LG Display will cease LCD panel production in China, shifting its focus to producing higher-margin large-sized OLED panels in the region. Industry analysts have noted that this strategic sale is expected to positively impact LG Display's financial structure, especially after the company faced several quarterly losses due to decreased demand for gadgets utilising display panels in recent years.
LG Display agrees to sell its stake in a Chinese LCD plant to TCL's CSOT for $1.54 billion.
The sale includes LG Display's 80% stake in a large LCD panel plant and 100% of its LCD module plant.
LG Display aims to strengthen its focus on OLED technology for enhanced competitiveness and stable profits.
Source: REUTERS
