Solar panels can be quite a competitive business due to Chinese competition and how they can offer what looks to be the same product at lower prices. Due to this, the South Korean company LG has decided to pull out of the solar panel business.
LG Electronics to Close Down Its Solar Panel Business
According to the story by Electrek, LG Electronics Inc., the Seoul-headquartered company, is now closing its global solar panel business. The decision's approval happened very recently in South Korea by the board of directors of the company.
Per the publication, one of the reasons why LG is closing down is because of how hard it has become to compete with their Chinese rivals. This is because the Chinese competitors offer much lower prices.
SVP Says Company is Looking to Concentrate on High Volume Products and Services
An explanation was given by LG Electronics USA Inc.'s Senior Vice President, John I. Taylor, regarding the matter.
In an email to Electrek sent by Taylor, it was stated that the decision was actually because of multiple factors instead of just one. Some of these factors include increasing costs of logistics, increasing costs of materials, and constraints when it comes to the supply chain.
According to Taylor's email, the announcement "looks ahead" as the company is concentrating on other high-volume products. LG is said to also be focusing on services just like energy storage systems or even energy management solutions.
What Does LG Want to Focus on Instead?
The technologies at hand, according to the report, complement the energy-efficient product offerings of the company.
This ranges from heat pump dryers and water heaters all the way to the more technologically advanced "HVAC solutions to industry-leading Energy Star certified home appliances to name a few."
LG to Support Current Customers with Limited Warranties
Per LG, panel production is expected to wind down some time in the spring. The South Korean company will also continue to support its solar consumers in the US by honoring all the limited warranties available.
According to a tweet by LG, it was announced that they are closing their solar panel business in order for them to better "focus on other businesses that will provide new experiences and value for customers."
What Will Happen to the 160 Employees and 60 Contract Workers?
The decision of LG to close its solar manufacturing arm will be impacting a whopping 160 employees as well as 60 contract workers. These workers have been working at LG's corporate campus, which is located in Huntsville, Alabama.
It should be noted that the production and the assembly of the LG solar panels started there ever since 2018.
LG Electronics North America President and CEO, Thomas Yoon, gave a statement regarding the matter. According to the CEO, the company is hoping that they will be able to retain "many" of the company's talented and dedicated employees.
Related Article: Razer Mechanical Keyboard BlackWidow TE Chroma v2 TKL Price Drops Extremely Low From $140 to $60
This article is owned by Tech Times
Written by Urian B.
