LG Chem, based in South Korea, is discontinuing the production of components for LCD panels due to a shift in its main customers’ focus away from display manufacturing, coupled with increased competition from Chinese rivals, which has squeezed profit margins.
The company has ceased production of liquid crystal display films at two facilities in central South Korea and is now in the process of divesting these plants. An information session was conducted for plant employees last month. LG Chem has indicated that while it is in the process of selling the business, the specifics of the buyer and other details are yet to be determined.
The proceeds from this sale will be channeled into the expansion of production facilities for battery materials in South Korea and the United States. This sector holds more promising growth prospects and will be a key focus area for LG Chem moving forward.
