LG Chem will exit the LCD film market as panel maker shifts its focus

As its primary customers have stopped manufacturing LCD panels and Chinese rivals have reduced its profit margins, South Korea's LG Chem will stop producing the components for LCD panels.

At two locations in central South Korea, the corporation has stopped producing liquid crystal display films and has started the selling process. It provided a briefing with an explanation for plant staff last month. Despite moving to sell the company, LG Chem stated that the buyer and other details had not yet been decided.

The sale's proceeds will be used to increase the South Korean and American manufacture of battery components, an industry with more promising development prospects that will become LG Chem's primary emphasis moving forward.

The LCD films safeguard the display's sensitive internal components while adjusting the light output by the panel to improve image clarity. Although it is estimated that LG Chem generates annual sales in the hundreds of millions of dollars, the company is now less profitable as rival Chinese producers have entered the market.

Display films were provided by LG Chem to Samsung Electronics and LG Display, two other members of the group. LG Display no longer produces TV panels in South Korea, while Samsung has completely discontinued developing LCDs. As one of their main suppliers, this has put pressure on LG Chem to discontinue manufacturing the components.

The business will keep making materials for organic light-emitting diode panels because, together, Samsung and LG Display control about 80% of the global market.