LG Display has wound down its automotive LCD module business in Nanjing, China. LG Display disclosed on Feb. 9 that its Nanjing unit signed a contract to transfer the automotive liquid crystal display (LCD) module business to the Nanjing unit of KOSDAQ-listed Top Run Total Solution for 104.1 billion won.

The company said the sale aims to upgrade its business structure and strengthen its profit structure. It explained, "By transferring the automotive LCD module business we produce in-house and then outsourcing it, we will raise company-wide operational efficiency."

The Nanjing unit has operated LCD module businesses for information technology (IT) devices and for automobiles. It will sell only the automotive LCD module business and keep the IT-device business. After the transfer, it plans to produce automotive LCD products through outsourcing.

The sale is the second since last year’s sale of its Guangzhou LCD plant to China’s TCL. LG Display is reshaping its business around organic light-emitting diode (OLED) products. It is interpreted as a strategy to improve profitability by shrinking its LCD business and to focus resources on higher value-added products such as OLED. The scheduled transfer date is July 30.