LG Electronics Inc.‘s board of directors has voted to close the company’s solar panel business. The decision comes as uncertainties in the global solar panel business continue to increase due to a variety of contributing factors, including the intensification of price competition and the rising cost of raw materials, the company states.

LG will continue to stand behind its solar brand and the company will maintain support for customers of existing LG solar panels for a period of time after the business’s closure has been completed. Solar panel production itself will continue until the second quarter this year to maintain adequate inventory for future service support.

The closure of the solar panel business is expected to be completed by June 30. LG’s Business Solutions (BS) Company, which operates the solar panel business, will reorganize its portfolio around information technology and information display.

Going forward, LG will leverage its renewable energy expertise to concentrate on growth sectors and plug into a new era of sustainability through rapidly evolving products and solutions including energy storage system, energy management solutions and other yet-to-be-announced advancements.