LG Display sells China LCD plant for $1.5 billion
According to a regulatory filing, LG Display will hand over all of its stake in the plant to China Star Optoelectronics Technology, a subsidiary of Chinese home appliance giant TCL, on March 31, 2025.
LG Display has signed a 2 trillion won (USD 1.5 billion) agreement to sell its entire stake in a large LCD plant in China’s Guangzhou amid rising competition from Chinese companies in the sector.
The sale is expected to provide the company with financial flexibility and allow it to renew focus on OLED technology, according to a report in the Korea Times.
According to a regulatory filing, LG Display will hand over all of its stake in the plant to China Star Optoelectronics Technology, a subsidiary of Chinese home appliance giant TCL, on March 31, 2025.
“We plan to focus more on the OLED business to enhance our business competitiveness and build stable profit bases. Also, we expect capital from the (plant) sale to help strengthen our financial stability,” LG Display said in a statement.
Samsung Display had divested its LCD plant in Suzhou, China, to CSOT in 2020.
LG Display’s Guangzhou LCD plant consists of two divisions, panels and modules. LG Display holds an 80% stake in the panel division, with the remaining 20% owned by Guangzhou Development District.
The module division is fully owned by LG Display.
LG Display said it is selling the stake to “improve efficiency to focus on the OLED business.”
The company, however, said that it is not yet in a position to disclose plans for the 2 trillion won raised through the sale.
LG Display has been scaling down its LCD business in recent years amid increasing competition from Chinese rivals.
At the same time, the company has been focusing on higher value-added products such as small- and mid-sized OLED panels for IT devices.
However, Chinese rivals may close the gap in the OLED business too, in the future, analysts warn.
