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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] LG Display said on Friday it has agreed to sell its automotive liquid crystal display (LCD) module business in China as part of efforts to accelerate its transition toward an OLED-centered business structure.
The company disclosed that it signed a contract to transfer the auto LCD module operations run by its Nanjing subsidiary to Toprun Total Solution’s Nanjing unit. The deal is valued at 491.5 million yuan (about KRW 104.1 billion), with the transaction expected to be completed on July 30.
The Nanjing unit had operated both IT and automotive LCD module businesses, but only the automotive LCD module segment will be divested under the agreement. LG Display said it plans to procure the relevant modules through outsourcing after the transfer.
The sale is part of LG Display’s broader strategy to scale down its LCD business, cut fixed costs, and improve operational efficiency, while reallocating resources toward higher-margin OLED products. The company said it aims to operate a more flexible production structure aligned with customer demand and market conditions.
Toprun Total Solution is a long-standing partner of LG Display and supplies automotive display components such as backlight units.
LG Display has been steadily restructuring its portfolio around OLED, including the sale of its Guangzhou LCD manufacturing plant in China completed in April last year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
