LG to end domestic production of LCD TVs in South Korea

Company is shifting production to more advanced OLED technology

                                

A global over-supply of liquid crystal display (LCD) has led to a corresponding price drop. This has prompted South Korean TV manufacturer LG Display to end domestic production by the end of the year. LCD production will continue at the firm’s China plant.

Fewer shipments from its LCD panel plant saw LCD TV businesses account for 32 per cent of LG’s total revenue for July to September 2019, down from 41 per cent in the previous quarter.

LG reported three consecutive quarterly losses between January and October last year and began a programme of cost cutting including voluntary redundancies. LG Display also changed its CEO.

New chief, Jeong Ho-young, is upbeat, however. The giant electronic business is focusing its attention on the newer, better organic light-emitting diode (OLED) technology, which it expects will account for 50 per cent of revenues by 2021, up from about 30 per cent in 2018.

“We plan to build systems to mass-produce OLED products in our Chinese factory by end of the first quarter this year,” said Jeong. This, he added, will lead to an upturn in overall performance in the second half of this year.

Last October, rival Samsung suspended one of its LCD production lines in South Korea.

FURTHER READING: Samsung reveals quarterly profit fell 56 per cent from a year ago

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