By Mark Sutton
Restructure to maximize growth potential for business portfolio
Korean electronics giant LG Electronics has announced that it will restructure its operations to focus on business solutions.
The changes, which will come into effect from the start of next year, are intended to allow LG to maximize the growth potential of its business portfolio, the company said in a statement.
The restructure will see the company reorganize its current four operating units into five companies. The Digital Display and Digital Media groups will merge into the Home Entertainment Company, focused on televisions, PDP modules and audio-video products; the Home Appliance unit will focus on refrigerators, washing machines, kitchenware and other domestic appliances and air conditioning will be spun off into its own unit.
The Mobile Communications Company remains the same, while the Business Solutions company will focus on commercial monitors, hotel TVs, digital signage, security and telematics.
Yong Nam, Vice Chairman and CEO of LG Electronics commented: “Our business will be perfectly positioned to address tomorrow’s challenges as a result of these changes. This strategy will enable us to capture even more of the ever-expanding commercial market. It will also help LG expand the value chain from device to solutions and allow us to better address the lifestyle needs of our current and future customers.”
LG launched a global brand campaign earlier this month, to build brand awareness among consumers.