HUNTSVILLE – LG Electronics Inc. is closing its global solar panel business, shuttering the company’s only North American solar panel manufacturing operation in Huntsville. The move will lay off about 160 employees and another 60 contract workers.
While LG executives quote corporate uncertainties, the impact of the rising cost of raw materials, logistics costs, price competition and supply constraints as reasons for the board of director’s decision, the announcement comes in the wake of the Biden administration’s decision to exempt foreign-made solar panels, made primarily in China, from Section 201 tariffs on solar imports to the United States, according to reporting from Breitbart News.
Reportedly, the Coalition for a Prosperous America (CPA) has been warning that if the current administration guts U.S. tariffs on China-made solar panels, it will have a devastating impact on America’s solar manufacturing sector.
Huntsville/Madison County Chamber of Commerce president Chip Cherry said in a news conference this morning that the good news is those displaced employees will be offered an opportunity to go to work at other areas within LG, and the Chamber will work with AIDT to help find locations for anyone who does not take a transfer.
“The good news for us and them is that we have a very robust advanced manufacturing market here in North Alabama, and we already have employers reaching out to us interested in an opportunity to talk to these employees,’” said Cherry. “These employees already work in a manufacturing environment, so they understand the assembly process and there is a ready job market for these men and women. We feel confident they will land on their feet and be welcomed by many of our local companies.”
Cherry said he and Huntsville Mayor Tommy Battle visited the LG research facility when the company decided to expand its facility into a solar panel operation a couple of years ago.
“They were very proud of the advances they have made in solar technology, but unfortunately the margins and the supply chain issues are impacting that business and making it not something they feel comfortable with pursuing,” Cherry said.
It is important to note however that LG “stood up that operation” after the Trump administration imposed a 30% tariff on China imports in 2018, opening an opportunity for LG to enter the market.
LG has a four-building complex at the Jetplex in Huntsville and there are 500 employees working in the main LG business that Cherry said will continue, while LG will look for other opportunities for utilizing the empty part of that facility.
Solar panel production 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.
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