LG Innotek to acquire former LG solar factory
During an LG Innotek board meeting it was decided that the company would take over the LG Electronics A3 factory in Gumi, South Korea.
According to a corporate filing, LG Innotek will acquire the Gumi A3 factory (land and building) for a total of KRW 283.4 billion (about EUR 210.7 million).
LG Electronics previously used the A3 plant for solar panel production, while LG Innotek has leased a part of its A3 plant to produce camera modules. But in late February this year, LG announced that it would be exiting the global solar panel business. Which will leave the site idle, which is also how the company describes the transaction in the filling – as the “sale of idle assets”.
As pointed out by the Electronic Times Internet, the A3 factory is the largest among LG Electronics' A1, A2, and A3 factories in Gumi. The total area of the building is 403,306 square meters.
However, it is still unclear what business the added factory will serve, but it is speculated that LG Innotek will use the A3 factory as a production base for smartphone camera modules for North American customers.