According to investment bank ( IB) industry insiders revealed on the 14th, LG Display is secretly considering selling its Yantai factory. The sale is being negotiated internally without the participation of independent consultants, and the sale amount is estimated to be hundreds of billions of won. The Yantai factory is owned by LG Display's wholly-owned local subsidiaryLG DisplayOperates in YantaiThe factory, established in 2010, has a module assembly facility of approximately 45,170 square meters (13,700 square meters) and is the site to receive finished productLCDBack-end processing base for assembling driver chips, housings and cables behind the panel font>In the industry, LG Display’s sale of the Yantai factory is regarded as a matter of course. This is because LG Displaysold its large LCD panel and module factory in Guangzhou to TCL Technology's TCLCSOT has officially withdrawn from China's LCD panel business. With the subsequent discontinuation ofLCDpanels, the role of the back-end process base responsible for assembly and shipment will gradually disappear. And judging from the group's development strategic plan, LG Display has been shifting its business focus from LCD panels to OLED (organic light-emitting diodes) for many years. It is a natural choice to retire LCD assets. With the growing demand for smartphones, automobiles andITequipment, it is gradually establishing its position as a high value-added business. Ainvestmentbanking industry personsaid, "After the sale of the Guangzhou factory, the reorganization of the YantaiLCDmodule base is a natural development of the business structure."According to the Financial Supervisory Service, the Yantai subsidiary's net profit plummeted from 119.1 billion won (approximately 598 million yuan) in 2022 and 100.9 billion won (approximately 507 million yuan) in 2023 to 26.9 billion won (approximately 135 million yuan) last year. Industry insidersbelieve that LG Display's sale of the Guangzhou LCD factory and the consequent reduction in China's LCD business is also one of the reasons for the decline in profitability of Yantai LCD. It is worth mentioning that in the face of the above-mentioned public opinion about selling the factory, LG Display flatly denied it and stated that there was no factual basis for selling the Yantai factory and that it had no plans to do so.However, looking at the past experience of the Yantai factory, there are traces of its sale plan. At the end of 2024, relevant sources revealed that LGD Yantai factory opened a "voluntary retirement" window to employees. The source quoted the whistleblower as saying: This "voluntary retirement" has a total limit of 400 places, involving all current positions, and approval is required after application.
In terms of compensation, "Skilled Jobs" chooses to pay based on "N", that is, the employee's working years × the average salary in the 12 months before the termination of the labor contract.
ANNA