LG Electronics is ditching the global solar panel business, the decision of which was approved on February 22 by the LG board of directors in South Korea. The decision was taken post a comprehensive review of the impact of increasing materials and logistics costs, as well as severe supply constraints on the solar business.
The company will wind up the panel production unit this spring but will continue to support its US solar customers for years to come and will honor the limited warranty with each product sold. But as the company shifts its focus on other energy-related business areas, the US consumers, installers and contractors will benefit, according to Thomas Yoon, president and CEO, LG Electronics North America.
In the times to come, LG will leverage its renewable energy expertise to unlock value for customers in new ways. The company will focus on growth sectors and explore sustainability through solutions including energy storage systems and home energy management.
“While exiting the solar panel business, LG is concentrating on products and services that can have an even greater impact,” Yoon said. “Sustainability is a core business principle at LG Electronics, and we are constantly evaluating the ways in which LG can unlock potential, create greater value and support our vision for a better life for all.”
The change in business strategy will impact about 160 employees and about 60 contract workers at LG’s corporate campus in Huntsville, Ala., where the company has been assembling solar panels since 2018. Panel production there is expected to continue into the second quarter.
“We hope we can retain many of our talented and dedicated employees,” said Yoon. The company is meeting U.S. solar panel workers to identify potential opportunities within other LG business and manufacturing units. Employees who will not be continuing with LG will be offered transition support and severance packages commensurate with their tenure with the company.
The solar panel decision does not affect LG’s other extensive operations in Huntsville, where the company has been located for 40 years. Today, Huntsville is home to LG’s U.S. customer service headquarters with more than 500 local positions working for or supporting its operations.
LG’s evolving portfolio of energy innovations covers a variety of new products and services where LG is positioned to be market leader, including energy storage systems, energy management solutions and various yet-to-be-announced advancements. These technologies complement LG’s broad array of energy-efficient product offerings, from heat pump dryers and water heaters to advanced HVAC solutions to industry-leading Energy Star certified home appliances.
