LG Chem sells OCA business on panel migration to OLED

Kang Doo-soon, Won Ho-seop, Park Chang-young and Cho Jeehyun 2021. 9. 24. 11:36
글자크기 설정 파란원을 좌우로 움직이시면 글자크기가 변경 됩니다.

이 글자크기로 변경됩니다.

(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.

[Photo provided by LG Chem Ltd.]
LG Chem Ltd. has sold off its optically clear adhesive (OCA) business to a Chinese investment company as part of its plan to exit the LCD market amid intensifying competition from cheap Chinese products.

The Korean chemical manufacturer recently sold its OCA business to Genzon Investment Group Co. for about 60 billion won ($51 million), according to industry sources on Thursday. OCA is an optically transparent adhesive film used on display devices and touch screen panels to bind optical materials to a primary sensor unit.

On Friday, LG Chem shares ended 0.13 percent higher at 761,000 won in Seoul.

The company acquired the OCA business from its affiliate LX Hausys Ltd (formerly LG Hausys) in 2016 at 80.5 billion won. OCA division that generated 200 billion won in annual sales at heyday plunged due to fierce competition from smaller Chinese rivals, said an industry expert.

The OCA no longer is of service to LG Display since it has migrated to OLED as its mainstay panel.

In line with the panel migration, LG Chem has also been moving away from materials serving LCD since 2019. The chemical company sold off its LCD color filter light-emitting material business, including manufacturing facilities in Korea and intellectual properties, to a Chinese company for 58 billion won in February.

It also decided to fold glass substrates business in March after failing to find a buyer.

LG Chem is focusing its resources on growing electric vehicle battery and OLED materials businesses.

The company in July announced eco-friendly, battery materials and life science businesses as three areas for new growth drivers. It plans to invest 10 trillion won in the three sectors by 2025, with 6 trillion won to be spent for separator and other key battery materials.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]

Copyright © 매일경제 & mk.co.kr. 무단 전재, 재배포 및 AI학습 이용 금지

이 기사에 대해 어떻게 생각하시나요?