LG Electronics Withdraws from Solar Panel Business... "Workforce Reallocation" (Update)

Decision to Withdraw Due to Profitability Decline... Plan to Relocate About 900 Employees

[Image source=Yonhap News]

[Asia Economy Reporter Lee Hye-young] LG Electronics is finally withdrawing from the solar panel business.

LG Electronics announced on the 23rd that at the board meeting held yesterday afternoon, it decided to terminate its solar panel business as of June 30.

LG Electronics had been continuously reviewing the direction of its solar panel business due to deteriorating business conditions, and after long-term discussions, it ultimately decided to withdraw from the business.

LG Electronics started its solar panel business in 2010, operating mainly with high-efficiency premium modules such as N-type and bifacial panels. However, the global solar market has seen intensified price competition due to the expansion of low-cost product sales, and the market and business environment have continued to worsen with rising raw material costs, including polysilicon.

Over the past several years, LG Electronics’ solar panel global market share remained in the 1% range, with sales and operating profits declining. Sales of about 1.1 trillion KRW in 2019 fell to about 800 billion KRW in 2020, and business uncertainties are expected to continue.

LG Electronics plans to produce solar panels until the second quarter, considering the necessary volume for after-sales service (A/S).

Personnel reallocation due to business withdrawal will also be carried out. About 900 employees in the energy business division, including approximately 600 domestic employees related to the solar panel business, will be reassigned.

LG Electronics stated, "Reallocation will prioritize employees’ capabilities and preferences, and will be conducted by comprehensively considering manpower demand from other business divisions and LG affiliates. For employees relocating to other regions, we will actively support them to quickly adapt to their new workplaces through sufficient consultation with the labor union."

This content was produced with the assistance of AI translation services.