LG Chem is planning to sell its IT film business as part of its wider plan to restructure its non-essential businesses, TheElec has learned.
Sources said the company is planning to sell the business unit within the year.
LG Chem earlier halted the operation of its petrochemical plant in Yeosu and is removing its styrene monomer factory within its Daesan facility, deeming these businesses as non-essential.
After 2020, the South Korean chemical giant, the parent company of battery maker LG Energy Solution, already ended its liquid crystal display (LCD) polarizer film business and optically clear adhesive (OCA) business as well.
LG Chem’s IT film business is handled by its IT Material Business, which produces triacetate cellulose (TAC) film used to protect LCD. The IT Material Business also makes automotive display surface processing film, PET film for cover windows, polarizing film, and protective film for OLED and others.
LG Chem has already notified employees that it will be selling its IT film business within the year. The company’s labor union has responded that it opposes any selling plan that doesn’t guarantee the employment of staff.
Meanwhile, LG Chem’s exit plan for its IT film business is also linked to the difficulty of the display industry in recent years.
Its main customer LG Display has been slow in expanding its IT OLED panel business.
Exiting its IT film business means LG Chem will also be able to focus more on its battery business. LG Energy Solution is one of the world’s largest makers of batteries for electric vehicles.
LG Chem has confirmed that it was planning to sell its IT film business.