LG Electronics sells mid-priced smartphone plants in China to Inspur Korean tech giant completes process to close smartphone production lines abroad
Translated by Kim So-in 공개 2022-03-28 08:04:05
이 기사는 2022년 03월 28일 08:00 thebell 에 표출된 기사입니다.
South Korea’s LG Electronics has completed a process to sell or shut down its smartphone production facilities abroad.LG Electronics sold its smartphone manufacturing plants in Yantai and Qingdao, China, to China’s largest server manufacturer Inspur at the end of last year, according to industry source on Friday.
Inspur LG Digital Mobile Communications (LGEYT) in Yantai was recognized as other non-operating expenses on LG Electronics' book because there was a difference between an estimated recovery value and a book value of 24.9 billion won ($20 million) during the last year's impairment test.
Qingdao LG Inspur Digital Communication (LGEQD) also incurred other non-operating expenses of 7.9 billion won in the impairment test. The two Chinese subsidiaries incurred a total of 32.8 billion won of loss on valuation.
LGEYT and LGEQD are 7:3 joint ventures between LG Electronics and Inspur. The Korean tech giant has produced its smartphones mostly in China and Vietnam. Its Chinese subsidiaries had produced low-to-mid-priced smartphone models while its Vietnamese entity has produced premium phones. LG Electronics moved its high-priced smartphone production lines from Korea to the Vietnamese city of Hai Phong in 2019.
LG Electronics had its smartphone manufacturing facilities in four countries - Vietnam, India, Brazil and China - and started a process to withdraw from the mobile business in 2021. Starting with the Hai Phong Campus, the company has completed the conversion of smartphone factories in India and Brazil to production lines for various products like home appliances, TVs, laptops and monitors.
The company had reviewed an option to sell plants in Vietnam and Brazil, but failed to draw sufficient demands.
The sale of Chinese subsidiaries has been carried out smoothly thanks to LG Electronics' solid partnership with Inspur since 2001. Especially, LG Electronics’ core mobile technologies such as f5G mobile communication weren’t included in the deal.
LG Electronics had considered a plan to sell its mobile communication division to global companies like Google, Facebook and Volkswagen, but scrapped the plan to prevent leakage of core technologies. According to Derwent, LG Electronics had 2,396 smartphone-related patents were in Korea, 2,162 in the U.S., and 646 in China, which are more than Apple’s 380 in Korea, 2,529 in the U.S. and 519 in China. (Reporting by Hyun-ji Sohn)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 신용등급 강등 GS건설, 주관사 'NH·KB' 공식 깼다
- [SSG닷컴 풋옵션 분쟁]1조 반환 압박, 신세계의 선택지는
- [차세대 프랜차이즈 돋보기]'손바뀜 3년' 반올림피자, 볼트온으로 외형 극대화
- [이사회 모니터/LS머티리얼즈]사라진 케이스톤 색채, 확실한 독립성 갖췄다
- 1분기 숨고른 SK매직, AI로 체질개선 속도
- [건설사 해외투자개발 포커스]대우건설, 글로벌 포트폴리오 3개축 '새판짜기'
- [thebell interview]"대신재팬레지던스리츠, 우선주로 투자안정성 확보"
- [화장품업계 일본시장 공략법]LG생활건강, M&A로 만들어낸 '시장 경쟁력'
- [중견건설사 재무점검]토지 매입 속도내는 대방건설, 양호한 부채비율 유지
- '디벨로퍼 스폰서' 디앤디인베, 오피스 거래 '두각'