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LG Electronics begins shutting down overseas smartphone plants, its smartphone factory in Vietnam’s Hai Phong city is for sale.
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If LG is not able to sell the factory as a whole, it might consider selling the plant site.
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As LG Electronics has begun withdrawing from the smartphone business, the company is taking steps to close down production plants in Vietnam’s port city of Hai Phong, Taubate of Brazil and Qingdao of China, the Business Korea reported.
With the decision to give up the smartphone business, the company thought of various ways to utilize the plants but failed to find a breakthrough.
Related: VinGroup is desirous about buying LG’s North American smartphone operations
In particular, the Vietnam’s Hai Phong plant, the largest among LG Electronics’ smartphone plants, was at first expected to find a buyer. It has been producing about 10 million smartphones annually, about half of LG’s smartphone output.
However, it was difficult for LG Electronics to find a buyer of the plant because Vietnamese smartphone manufacturers also have production lines and local companies could not afford to pay more than 100 billion won to acquire it. As a result, the company is considering selling the plant site only.
Also read: LG Electronics-Vingroup of Vietnam mobile talk collapses
LG’s smartphone division has been posting losses totaling some $4.5 billion over the last five years. The group has said that dropping out of the fiercely competitive smartphone business would allow it to focus on growth areas such as electric vehicle components, connected devices and smart homes.
Contact sophie@gbs.com.vn to be advised about the deal in details.
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Source: Vietnam Insider