LG is Selling its China Headquarters: Report

  • LG Group is reportedly selling its headquarter building for $1.15 billion
  • Samsung has shut its smartphone manufacturing operations from China

Yonhap news agency has reported that the LG Group is selling its twin towers located in Beijing, China. These towers are being sold to RECO Changan Private Ltd at $1.15 billion price tag.

It is to be noted here that these towers are owned by LG Holding Hong Kong. LG Electronics Inc., LG Chem Inc. and LG International Corp have a stake in the LG Holding Hing Kong.

LG Twin Towers in Beijing, China (Image Credits – CEO Suite)

Securing liquidity amid global economic uncertainties

The LG Group, as per the report, is selling the twin towers in order to secure liquidity amid global economic uncertainties. The deal will be completed in or before April 2020. LG Group had initially invested $400 million in building these towers. These were built in Chaoyang district of Beijing in 2005.

Samsung, another Korea-based consumer electronics giant, had recently shut its smartphone manufacturing operations in China. In fact Sony had also said that it would be manufacturing smartphones in Thailand instead of China.

LG pulled out of MWC 2020

LG Electronics had recently withdrawn its participation from the Mobile World Congress (MWC). The company said that it is closely monitoring the situation related to the novel coronavirus outbreak. This virus outbreak was recently declared a global emergency by the World Health Organization as the it continues to spread outside China.

“With the safety of its employees, partners and customers foremost in mind, LG has decided to withdraw from exhibiting and participating in MWC 2020 later this month in Barcelona, Spain. This decision removes the risk of exposing hundreds of LG employees to international travel which has already become more restrictive as the virus continues to spread across borders,” read LG’s official statement.