Global electronics manufacturer of consumer and commercial products LG is exiting the solar panel business.
The company announced the demise of its solar panel unit yesterday. The closure of the business is expected to be completed by 30 June.
This is the second business unit the South Korean electronics giant has shut down in the last 12 months.
In April last year, LG closed its mobile business unit, saying the decision to exit was strategic in the "incredibly competitive" mobile phone sector.
At the time, the company said it would focus on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services.
Now, on the decision to shut down its solar panel business, LG says the move was influenced by uncertainties in the global solar panel business, intensifying price competition and the rising cost of raw materials.
Going forward, LG says, it will leverage its renewable energy expertise to unlock value for customers in new ways, and concentrate on “growth sectors and plug into the new era of sustainability through solutions, including energy storage systems and home energy management”.
It says LG’s Business Solutions, which operates the solar panel division, will now reorganise its portfolio around information technology and information display.
“The company aims to accelerate growth with its diverse line-ups of advanced products and tailored services.”
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