X

In further indications of the declining plasma TV market, LG has said that it is shutting a key plant that makes plasma display panels in an effort to cut costs and rejuvenate its business in the sector.

LG spokeswoman Judy Pae said the shutdown is scheduled for the first half of this year. “This move is to increase operational efficiency and to reduce costs” totalling $22 million  to $32 million annually, LG Electronics said in a statement issued later. “This is a part of LG’s ongoing efforts to improve the performance of its plasma display panel business as a whole,” the statement read.

LG Electronics is South Korea’s largest consumer appliance manufacturer. The company is the world’s second-largest plasma display maker by shipments. It is also a major global producer of cellphone handsets. The plant to be shut, named A1, is the oldest of the company’s four and has an annual capacity of 840,000 42-inch plasma panels used in flat screen televisions, or 70,000 a month.

 

LG’s total 42-inch plasma display module production capacity will decline to 360,000 units per month, or 4.32 million a year, with the loss of the A1 plant, the statement said. LG Electronics lost 123 billion won ($132.1 million; euro98 million) in the three months ended March 31. It recorded net profit of 150.8 billion won a year earlier. Pae confirmed that LG’s plasma division suffered a loss in the first quarter, but said she could not specify how big it was.

The market for flat panels, which includes plasma and liquid crystal displays, has suffered amid oversupply and falling prices for the components. LG competes with other plasma makers, including South Korea’s Samsung SDI Co and Japan’s Matsushita Electric Industrial Co. Nam Yong, LG’s chief executive, last month denied speculation that there were plans to sell or shut down the plasma business, telling investors and analysts that the company would study the best way to proceed, according to Pae.

 

HAIER Series 600 FLW HPD Pairs 728x90 1 LG To Shut Plasma Plant
Arlo EOFY25 728x90 LG To Shut Plasma Plant
728x90 LG To Shut Plasma Plant
MaxRanger4K Leaderboard 728x90 LG To Shut Plasma Plant
Westan 728x90px LG To Shut Plasma Plant
ELX DIG Crosscat Promo 728x90 Mar25 LG To Shut Plasma Plant
GOTHAM 728px x 90px LG To Shut Plasma Plant
Skullcandy 728x90 1 LG To Shut Plasma Plant
BlueAnt 4SQM PumpAirUltra 728x90px LG To Shut Plasma Plant
channel news banner 728x90 Hitachi LG To Shut Plasma Plant
Marshall 728x90 1 LG To Shut Plasma Plant
728x90 LG To Shut Plasma Plant
BEL2535 BPB024 4SQ Banners 728x90 LG To Shut Plasma Plant
AU X8 Banner 728x90 LG To Shut Plasma Plant
Flick of a switch 728x90 1 LG To Shut Plasma Plant
Uniden Channelnews SoloX July 2024 728x90 1 LG To Shut Plasma Plant
728 x 90 LG To Shut Plasma Plant
728x90 LG To Shut Plasma Plant
ChannelNews AZ100 728x90 LG To Shut Plasma Plant
FA 979 HN MDF SG14 14gen 728x90 1 LG To Shut Plasma Plant
JBL TourPro3 728x90 LG To Shut Plasma Plant
728X90 1 LG To Shut Plasma Plant
Px7 S3 728x90 1 LG To Shut Plasma Plant
Hisense KV BannerAd 728 90 LG To Shut Plasma Plant
241211 SAV Ruark CNewsJan Leader LG To Shut Plasma Plant


YOU MAY ALSO LIKE