LG took the decision due to a variety of contributing factors, including the intensification of price competition and the rising cost of raw materials
South-Korea based LG Electronics Inc. (LG) is closing the solar panel business. The decision was approved by the board of directors last night. The decision comes as uncertainties in the global solar panel business continue to increase due to a variety of contributing factors, including the intensification of price competition and the rising cost of raw materials.
LG noted it will continue to stand behind its brand and the company will maintain support for customers of existing LG solar panels for a period of time after the business’s closure has been completed. Solar panel production itself will continue until the second quarter this year to maintain adequate inventory for future service support.
LG’s Business Solutions (BS) Company, which operates the solar panel business, will reorganize its portfolio around the key pillars: Information Technology (IT) and Information Display (ID). The company aims to accelerate growth with its diverse lineups of advanced products and tailored services.
Going forward, LG will leverage its renewable energy expertise to unlock value for its customers. The company will concentrate on growth sectors and plug into a new era of sustainability through rapidly evolving products and solutions including Energy Storage System (ESS), energy management solutions and other yet-to-be-announced advancements.
Employees who will not be continuing with LG will be offered transition support and severance packages commensurate with their tenure with the company. The company had also exited the mobile phone business last year.
The closure of the solar panel business is expected to be completed by June 30.
