Gumi, South Korea — LG Electronics said Friday it will close one of its four plasma display panel factories here, to cut costs and improve efficiency, according to a report in the Korea Herald.
LG will shut down its A1 plant in the first half of the year. It is the company’s oldest plasma plant and has an annual capacity of 840,000 42-inch plasma panels, or 70,000 a month.
The move is expected to save between $22 million and $32 million a year, according to an LG Electronics statement.
LG said its total 42-inch plasma display module production capacity will decline to 360,000 units per month, or 4.32 million a year, after the plant’s closure.
LG Electronics reported a loss of 132.1 million in the three months, ended March 31.