LGD secretly sells Yantai LCD factory!

 Industry insiders revealed that LG Display is studying the sale of its LCD module factory in Yantai, Shandong Province, China. Following the sale of its liquid crystal display (LCD) factory in Guangzhou, China last year, LGD's move is seen as a move to reorganize its remaining LCD back-end processing base.
According to investment bank (IB) industry insiders on the 14th, LG Display is secretly considering selling its Yantai factory. The sale, which is being negotiated internally without the involvement of separate advisers, is estimated to be worth hundreds of billions of won. The Yantai factory is operated by LG Display Yantai, a wholly-owned local subsidiary of LG Display. The factory was established in 2010 and has a module assembly facility of approximately 45,170 square meters (13,700 square meters). It is a back-end processing base that assembles driver chips, housings and cables after receiving finished LCD panels. From an industry perspective, LG Display’s sale of the Yantai factory is seen as a matter of course. This is because LG Display sold its large-scale LCD panel and module factory in Guangzhou to TCL Huaxing, a subsidiary of TCL Technology, for about 2 trillion won last year, officially withdrawing from the Chinese LCD panel business. With the subsequent discontinuation of LCD panel production, the role of the back-end process base responsible for assembly and shipment will gradually disappear. And judging from the group’s development strategic plan, LG Display has been focusing its business onThe focus has shifted from LCD panels to OLEDs (organic light-emitting diodes), and it is a natural choice to retire LCD assets. In recent years, the profitability of Korean LCD panels has declined rapidly under the fierce offensive of Chinese panel manufacturers, while OLED is gradually establishing its position as a high value-added business as the demand for smartphones, automobiles and IT equipment continues to grow. An investment banking industry source said, "After the sale of the Guangzhou factory, the reorganization of the Yantai LCD module base is a natural development of the business structure." According to the Financial Supervisory Service, the Yantai subsidiary's net profit plummeted from 119.1 billion won (approximately 598 million yuan) in 2022 and 100.9 billion won (approximately 507 million yuan) in 2023 to 26.9 billion won (approximately 135 million yuan) last year. Industry insiders believe that LG Display's sale of the Guangzhou LCD factory and the subsequent reduction in China's LCD business are also one of the reasons for the decline in Yantai LCD's profitability. It is worth mentioning that in the face of the above-mentioned public opinion about selling the factory, LG Display flatly denied it and stated that there was no factual basis for selling the Yantai factory and that it had no plans to do so. However, looking at the past experience of the Yantai factory, there are traces of its sales plan. At the end of 2024, relevant sources revealed that LGD Yantai factory opened a "voluntary retirement" window to employees. The source quoted the whistleblower as saying: This "voluntary retirement" has a total limit of 400 places, involving all current positions, and approval is required after application.

In terms of compensation, "Skilled Workers" chose to pay based on the "N" basis, that is, the employee's working years × the average salary in the 12 months before the termination of the labor contract.