LG Electronics to exit solar module company mentioning supply chain concerns

Feb 23, 2022 11:28 AM ET
  • LG Electronics has actually confirmed it is to leave the solar module production organization and shutter its setting up plant in Alabama, US.
LG Electronics to exit solar module company mentioning supply chain concerns
Image: LG Electronics

The decision, authorized by the consumer electronics significant's board yesterday and also validated by a press note from the company's United States workplace, followed what it described as a "thorough testimonial" of the effect of rising product and logistics expenses in addition to supply constraints on its solar organization.

LG said it would certainly remain to lean on the renewable resource experience collected by concentrating rather on markets consisting of power storage space as well as residence power management.

Module production is to be unwinded from this spring before finishing in Q2 2022, affecting around 160 employees and an additional 60 agreement employees at the firm's setting up plant in Alabama.

Thomas Yoon, head of state and CEO at LG Electronics North America, claimed business intended to preserve "several" of those employees. The business is to meet workers to recognize chances in other producing units.

In a note provided to clients previously today (23 February), financial investment financial institution ROTH Capital stated it approximated LG held a ~ 14% share of the United States property solar market, recommending the company's leave could be a "source of friction" for module supply moving forward.

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