LG to exit solar panel business
LG Electronics says that it is exiting the global solar panel business. The decision follows a review of the impact of increasing material and logistics costs, as well as severe supply constraints, on the solar business.
Going forward, LG says it will leverage its renewable energy expertise to unlock value for customers in new ways. The company will concentrate on growth sectors through solutions including energy storage systems and home energy management.
"While exiting the solar panel business, LG is concentrating on products and services that can have an even greater impact," says CEO, LG Electronics North America, i a press release. "Sustainability is a core business principle at LG Electronics, and we are constantly evaluating the ways in which LG can unlock potential, create greater value and support our vision for a better life for all."
The change in business strategy will impact about 160 employees and about 60 contract workers at LG's corporate campus in Huntsville, Alabama, where the company has been assembling solar panels since 2018. Panel production there is expected to continue into the second quarter. Although panel production will wind down this spring, LG will says it continue to support its U.S. solar customers for years to come.
"We hope we can retain many of our talented and dedicated employees," Yoon, says in the press release. The company is meeting U.S. solar panel workers to identify potential opportunities within other LG business and manufacturing units. Employees who will not be continuing with LG will be offered transition support and severance packages.
The company says that the decision to exit the solar panel business will not affect LG's other operations in Huntsville.