Samsung to spin off LCD business in April 2012

Samsung to spin off LCD business in April 2012

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Asia Bizz: South Korean giant Samsung decided to spin off its LCD (Liquid Crystal Display) panel manufacturing unit on February 20, 2012. The decision was reportedly taken by the manufacturing panel.

The new company will be provisionally named as Samsung Display Co which will be launched in April 1, 2012.The company said that it will have an investment of 750 billion won in capital.

The South Korean company took the decision looking at its competitors, who are at present struggling in terms of slow demand and falling profits in the LCD business. With the new structure, the new LCD panel business will have the ability to take business decisions quickly and even the clients will get a quick response.

However, the new move will require an approval from the shareholders of the company in the month of March 2012. For five months, the company was reportedly facing steep declines and the prices stabilized in December 2011 due to better sales than expected and the decreased production. The stability in the panel prices can be attributed to lean inventories throughout the supply chain and also to lower the factory utilization rates after the suppliers had to cut the production to control supply.