LG Electronics said on Wednesday that it was exiting its solar panel business. It will officially close down the business on June 30, after its board of directors approved the decision on Tuesday.
The company said it made a comprehensive review of the impact of increasing material and logistics costs as well as severe supply constraints before making the decision.
Solar panel production will end by the second quarter, LG said, while it will continue to offer support for US customers in the coming years which will depend on the warranty they were offered.
The decision will affect 160 employees and 60 contract workers hired by LG while 900 employees in South Korea in related business will be repositioned to other posts, the South Korean company said.
While the solar panel business is closing down, LG will continue in other energy related-businesses such as energy storage systems and home energy management by leveraging its renewable energy expertise, the company said.