LG Display halts operation of domestic LCD production plant for TVs

[Asia Economy Reporter Hyunseok Yoo] LG Display has decided to halt operations at its 7th generation TV LCD production plant located in Paju, Gyeonggi Province.

LG Display announced on the 23rd that it will cease operations of its 7th generation LCD panel production plant as of December 31. The revenue from the discontinued production area amounts to approximately 1.4549 trillion KRW, which is about 4.9% of last year's consolidated sales.

LG Display explained the reason for the production halt as "intensified competition in the LCD TV market." It added, "We expect no disruption to our normal business activities" and stated, "We will continue to innovate our business structure by focusing on high value-added sectors."

Amid a global economic downturn leading to reduced sales of finished products such as TVs and continued poor performance, LG Display is accelerating its exit strategy from TV LCD production.

Earlier, during the Q3 earnings conference call in October, the company announced plans to advance the termination of domestic TV LCD production by 6 months to 1 year ahead of schedule and to gradually reduce production of 8th generation TV LCD panels in Guangzhou, China.

LG Display intends to reduce unprofitable LCD production and restructure its business around organic light-emitting diode (OLED) technology.