Korean electronics manufacturer LG announced that it will close its solar module business by the end of June.
“The decision comes as uncertainties in the global solar panel business continue to increase due to a variety of contributing factors, including the intensification of price competition and the rising cost of raw materials,” the company said in a statement. “LG will continue to stand behind its brand and the company will maintain support for customers of existing LG solar panels for a period of time after the business’s closure has been completed. Solar panel production itself will continue until the second quarter this year to maintain adequate inventory for future service support.”
According to the company, the employees working at the PV unit, which is part of the company's Business Solutions (BS) division, will be offered transition support and severance packages commensurate with their tenure with the company.
In its latest financial results, LG reported a slight increase in revenue for the BS division despite the “sluggish performance” of its solar module business.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
I believe this to be of a short sighted move. The demand curve is going up with absolutely no downward pressure in foreseeable future. There is still room for insane ROI sometime in the next decade. LG would be smart to at least keep their powder dry.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.