Alabama — LG is exiting the global solar panel business.
The company says the decision, approved Feb. 22 by the LG board of directors in South Korea, follows a comprehensive review of the impact of increasing material and logistics costs and severe supply constraints on the solar business.
Although panel production will wind down this spring, LG will continue to support its U.S. solar customers for years to come. LG stands behind its brand and will honor the limited warranty with each product sold.
LG says it’ll focus on other energy-related business areas, according to Thomas Yoon, president and CEO, LG Electronics North America.
“While exiting the solar panel business, LG is concentrating on products and services that can have an even greater impact,” Yoon said.
The change in business strategy will impact about 160 employees and about 60 contract workers at LG’s corporate campus in Huntsville, Ala., where the company has been assembling solar panels since 2018. Panel production there is expected to continue into the second quarter.
“We hope we can retain many of our talented and dedicated employees,” said Yoon. The company is meeting U.S. solar panel workers to identify potential opportunities within other LG business and manufacturing units. Employees who will not be continuing with LG will be offered transition support and severance packages commensurate with their tenure with the company.
The solar panel decision does not affect LG’s other extensive operations in Huntsville, where the company has been located for 40 years.