LG Electronics looking for buyer for smartphone plants
14:08 | 12/04/2021 Print Article
South Korean technology giant LG Electronics is shutting down all smartphone plants and is beginning to look for buyers.
|LG Electronics is looking to sell its smartphone plants. Source: Glassdoor |
After announcing to withdraw from the smartphone business, LG Electronics is closing down production plants in Haiphong (Vietnam), Taubate (Brazil), and Qingdao (China) after failing to effect a breakthrough, according to Business Korea.
Of these, the Haiphong plant, which is the largest among LG Electronics' smartphone plants with an annual capacity of about 10 million smartphones, equaling about half of LG's total smartphone output, has been announced to find a buyer at the selling price of KRW100 billion ($90 million). Realising the difficulties of finding a local buyer, which is going to manufacture almost 10 million smartphones per year, LG Electronics is considering selling the plant site only, without the production lines.
The Taubate and Qingdao plants are facing the same difficulties. They have a total capacity of about 8-9 million smartphones a year. After a rumour about the sale of the Taubate plant caught wind at the end of February, executives and employees at the plant have been staging a strike since March 26 due to concerns over their job security.
Last month, LG Electronics attempted to sell its smartphone factories to local conglomerate Vingroup, without success.
“LG negotiated with Vingroup to sell its smartphone factories in Vietnam and Brazil. However, the recent negotiations failed mainly due to price disagreements,” the Korea Times today quoted a senior industry official who understood the deal.