LG Display said on the 9th it signed a contract to transfer its automotive liquid crystal display (LCD) module business in Nanjing, China, to Top Run Total Solution's Nanjing subsidiary.
The transfer price is 491.5 million yuan (about 100 billion won). The planned transfer date is July 30. LG Display said the purpose of the transfer is "business structure advancement and revenue structure reinforcement."
LG Display's Nanjing subsidiary has operated IT and automotive LCD module businesses. Under this contract, only the automotive LCD module business will be transferred to Top Run Total Solution's Nanjing subsidiary. After the transfer, the automotive LCD modules it had produced in-house will be outsourced.
An LG Display official said, "Through this transfer, we will cut fixed costs and operate flexibly in line with customer and market conditions, enhancing companywide efficiency to strengthen business competitiveness," and added, "While we continue to push for a business structure reorganization centered on organic light-emitting diodes (OLED), this transfer contract is also a strategic choice to establish ourselves as a 'technology company' focused on high added value through the rationalization of the LCD business."