SEOUL, February 10 (AJP) - LG Display said on Monday it will sell its automotive liquid crystal display (LCD) module business in Nanjing, China, as the company accelerates its transition toward higher-margin organic light-emitting diode (OLED) segment.
In a regulatory filing, the company said it signed a contract to sell the business to the Nanjing unit of Toprun Total Solution for 491.5 million yuan ($68 million), with the transaction scheduled to close on July 30.
LG Display’s Nanjing subsidiary currently operates both IT and automotive LCD module operations, but only the automotive LCD business will be carved out and transferred under the agreement. Following the sale, automotive LCD module production will shift from in-house manufacturing to outsourced operations to improve efficiency and reduce fixed costs.
The move forms part of LG Display’s broader restructuring aimed at strengthening a business portfolio centered on OLED displays, which command higher margins and are increasingly used in premium televisions, mobile devices and automotive applications.
The company said streamlining LCD operations would allow more flexible production aligned with customer demand and market conditions while easing cost pressures and improving competitiveness.
LG Display has been steadily exiting or downsizing LCD operations as it pivots to OLED. Last April, the company completed the sale of its Guangzhou LCD plant in China.
An LG Display official described the latest transfer as a strategic move to concentrate resources on high value-added technologies.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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