Dec 16, 2016: By restructuring the current business structure, LG Display has made the moves to specialize solely in OLEDs. The company is into strategic reorganization process, and merging its business divisions to focus on OLED business.
The strategic reorganization
To keep pace with the increasing growth of the OLED market, and to improve the efficiency of its existing business divisions, LG Display has merged its existing businesses ans structured them as per products.
According to industry sources, on December 14, LG Display reorganized and reshuffed its business divisions for 2017. The company merged the existing five business divisions—TV, OLED, IT, mobile and AD—and made three divisions—TV, IT and mobile.
While Vice President Hwang Yong-gi will head the TV business division, Vice President Choi Hyung-seok will lead the mobile business division, and Vice President Jeong Kyong-deuk will head the IT business division.
This reshuffle has been done keeping the growth of OLED business in mind, which the company sees as the key engine to drive future growth.
The TV business division has been made stronger by merging the existing LCD TV division and OLED TV division, with the aim to accelerate the OLED panel business. LG Display has also merged the OLED lighting business division to the TV business division.
The mobile business division will also focus on plastic OLEDs (P-OLEDs) as it has now acquired the next-generation business from the OLED division. LG Display has also merged the the automotive display business division to the mobile business division.
LG Display had invested US$856.16 million (1 trillion won) in 2015 to expand P-OLED panels business. P-OLED panels are used in smartphones.
A new production line which is being developed at Gumi plant is expected to operate early next year to manufacture OLED panels for Apple’s next-generation iPhones.
The company has also decided to make US$1.71 billion (2 trillion won) investment to set up another production line, at the Paju plant in Gyeonggi Province to produce P-OLEDs. The mobile business division will now manage the development and production of P-OLEDs.