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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] LG Electronics is scaling back its Energy Storage System (ESS) business and focusing its resources on other areas such as HVAC (Heating, Ventilation, and Air Conditioning).
According to industry sources on Thursday, the ESS division under LG Electronics' Energy Solutions (ES) business unit has recently been renamed to the ESS Support Taskforce. The ESS development team, which was responsible for product development, has effectively been disbanded.
LG Electronics entered the ESS market in 2014 by acquiring LG Uplus' power conversion system (PCS) division for about 7.7 billion won. However, it faced challenges in expanding its market share due to the aggressive low-price strategies of Chinese companies.
As part of its "select and focus" strategy, LG Electronics is scaling back its ESS business, which has proven difficult to turn profitable, and is instead concentrating on strengthening its capabilities in HVAC and other business areas.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
