LG Electronics beefing up solar energy business

LG Electronics said it would invest around 160 billion won ($145 million) to beef up its solar power business until mid-2015.

“LG has issued corporate bonds to invest in lines for n-type solar modules and infrastructure maintenance at the firm’s Gumi plants,” the company said in its financial report filed at Korea Exchange last week.
 
LG said it would execute a series of investment plans by the end of July this year.

At its meeting with analysts and reporters last Thursday, Chung Do-hyun, LG’s chief financial officer said that the firm’s solar power business ― an independent business unit of the electronics firm ― turned to profitability in the fourth quarter last year, pinning high hopes on the long-struggling business.

Other Korean firms including Samsung Fine Chemicals, and Samsung SDI have phased out their solar businesses as they do not guarantee short-term returns.

“LG’s latest funding seems to be part of its long-term initiatives in the sector,” a market watcher said.

Facing steep competition from Chinese firms with low-cost solar products, LG has been ramping up its efforts to roll out products featuring high performance and efficiency.

By Kim Young-won (wone0102@heraldcorp.com)