LGD "Strategic Utilization of LCD Assets at Guangzhou Factory in China and Others Under Diverse Review"

On the 21st, LG Display announced through a public disclosure that it is conducting various reviews on the strategic utilization of liquid crystal display (LCD) assets, including its Guangzhou factory in China. The company stated, "We are transitioning our business structure from LCD to organic light-emitting diode (OLED)-centered operations," but added, "However, there are no specific confirmed matters or decisions regarding the sale at this time."

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This disclosure was made in response to recent media reports suggesting that LG Display is accelerating the sale of its Guangzhou factory, which produces LCDs for TVs. According to industry sources, BOE, China's largest display manufacturer, China Star Optoelectronics Technology (CSOT), a display subsidiary of Chinese home appliance maker TCL, and Skyworth, another Chinese home appliance company, are mentioned as potential buyers for the Guangzhou LCD factory. It is known that four to five parties, including these companies and financial investors (FI), have submitted letters of intent (LOI) to LG Display.

Market research firm DSCC recently cited sources indicating that CSOT is highly likely to acquire the Guangzhou LCD factory. Previously, CSOT acquired Samsung Display's 8.5-generation LCD factory in Suzhou, China, in 2021. The sale price is expected to be in the range of 1 trillion won.

Hyunwoo Lee, Executive Vice President and Head of Large Business Division at LG Display, said at the 'CES 2024' briefing regarding the timing of the Guangzhou factory sale, "We are proceeding with business restructuring according to schedule, but we cannot specify any timing or the buyer for the Guangzhou LCD factory sale at this point." He added, "There is a need to accelerate the business structure through OLED, and we will continue to do so this year, expecting it to be completed within the year."

LG Display has been reducing the proportion of its LCD TV panel business and restructuring its business around OLED, including ending domestic production of low-profitability LCD TV panels at the end of 2022.

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