LG Display sells Guangzhou LCD plant to China's CSOT for $1.53B

LG Display continues with its divestment the LCD business with the sale of its plant in Guangzhou, China, to local firm CSOT.

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

LG Display has inked a deal with China's CSOT to sell its liquid crystal display (LCD) plant in Guangzhou, China, after the firm's board gave the greenlight. The transfer is set to be completed on March 31 of next year at a price of 2.03 trillion won ($1.53 billion).

CSOT, a display-making subsidiary of Chinese TV manufacturer TCL, is the second-largest LCD panel manufacturer in the world by total surface area shipped. The company has been expanding its LCD business through acquisitions, including the purchase of Guangzhou-based LCD manufacturing facilities and related panel technology from Samsung Display in 2021.

LG Display has been seeking to divest its Chinese LCD plant as it shifts its focus to the more profitable organic light-emitting diode (OLED) display business. The company's OLED sales have been increasing, contributing to a significant reduction in its operating loss in the second quarter of this year.

The domestic display manufacturer, however, has clarified that it will continue its high-end LCD business for IT and automotive applications. The company plans to maintain profitability by focusing on high-end products with features such as low power consumption, distinctive design and superior image quality.

BY YOON SEUNG-JIN [yoon.seungjin@joongang.co.kr]