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LG is closing its solar panel business

LG appears to be consolidating its efforts as far as consumer electronics are concerned. This as the South Korean manufacturer has confirmed that it will be shutting down its solar panel business.

While not as much of a bombshell announcement as the company shuttering its mobile division last year, the closure of another aspect of the business in the space of two years will likely be cause for concern with investors.

To that end, LG released a statement explaining the reason behind the decision.

“The decision was approved by the board of directors last night. 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,” it said in a press 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,” it added.

The completion of the closure of the solar panel division is expected come 30th June later this year.

As such, it looks like much of the focus for LG moving forward will be on the home appliances and TV side of things. Hopefully though, there are not more closures to come, especially given the brand’s presence in countries like South Africa.

“Going forward, LG will leverage its renewable energy expertise to unlock value for its customers,” the statement concluded.

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