South Korea's LG Display said on Thursday it had agreed to sell its stake in its large liquid crystal display (LCD) plant in Guangzhou, China, to TCL's LCD unit CSOT for 10.8 billion yuan ($1.54 billion).

LG Display (LPL) has released an update. LG Display Co., Ltd. is divesting from its LCD TV panel manufacturing business to concentrate on OLED technology, selling a majority stake in its Chinese subsidiary for a total of KRW 2.

SOUTH Korea’s LG Display said on Thursday (Sep 26) it had agreed to sell its stake in its large liquid crystal display (LCD) plant in Guangzhou, China, to TCL’s LCD unit CSOT for 10.8 billion yuan (S$2 billion).

TCL CSOT will acquire 80 percent of LG Display's 8.5-generation LCDs panel plant and all of its LCD module factory, under the deal announced separately by parent company TCL Technology Group and the South Korean firm yesterday. The deal will likely be completed by the end of next March, they added.

The move is meant to better focus its business on its organic light-emitting diode (OLED) operations, LG Display said, in which it is more competitive than in the saturated LCD market.

LG Display continues with its divestment the LCD business with the sale of its plant in Guangzhou, China, to local firm CSOT.

Once a thriving business to replace the traditional CRT displays from the top of our desks, the LCD technology is seemingly now a liability for South Korean companies like LG and Samsung. This week LG Display inked a deal to sell its China-based LCD plant in a bid to focus on it more profitable OLED business,

LG Display signed a 2 trillion won ($1.5 billion) deal to sell its entire stake in a large LCD plant in Guangzhou, China, the company said in a regulatory filing, Thursday.