Korean electronics manufacturer LG announced that it will close its solar module business by the end of June.
“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,” the company said in a 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 an adequate inventory for future service support.”
According to the company, the employees working at the PV unit, which is part of the company’s Business Solutions (BS) division, will be offered transition support and severance packages commensurate with their tenure with the company.
In its latest financial results, LG reported a slight increase in revenue for the BS division despite the “sluggish performance” of its solar module business.