LG Display will sell Chinese LCD plant to CSOT

LG Display's LCD plant in China is set to be sold to CSOT, with an exclusive negotiation in progress.

LG Display's LCD plant in Guangzhou, China [LG DISPLAY]

China's CSOT has been selected as the preferred bidder for LG Display's liquid crystal display (LCD) plant in Guangzhou, China, the Korean display maker said in an electronic disclosure on Thursday.

The two companies will carry out an exclusive negotiation on the details of the deal, according to the disclosure.

LG Display has been seeking to sell off its LCD plant in China as it shifts its portfolio to center on the more premium organic light-emitting diode display. An array of Chinese display companies, including BOE, has shown interest in the offering, but CSOT is said to have been preemptively selected after offering a higher price.

CSOT is a display-making subsidiary of Chinese TV manufacturer TCL, which ranks second to BOE by total surface area of LCD panels shipped.

The Chinese panel producer has ramped up its LCD business by acquiring Guangzhou-based LCD manufacturing facilities and related panel technology from Samsung Display in 2021, which scrapped the business due to low profitability.

LG Display has been expanding its OLED business. Increasing sales of OLED panels helped LG Display downsize its operating loss in the second quarter this year to 93.7 billion won ($68.5 million) from 881.5 billion won the year before.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]