LG Hausys Ltd., an industrial materials unit of South Korean conglomerate LG Group, is looking for a buyer for its automotive and advanced materials division to focus on core business by divesting the money-losing business.

According to investment banking sources on Thursday, LG Hausys with its lead sale manager Samil PwC is now contacting potential buyers for the automotive and advanced materials business.

LG Hausys produces interior parts, skin and vinyl with lightweight materials for vehicles and high-performance vinyl coated materials for home appliances.

The business makes up about 30 percent of the company’s total revenue, but its profitability is rapidly deteriorating in line with a slowdown in overall auto demand.

LG Hausys’ automotive and high-performance materials division last year incurred a cumulative operating loss of 11.5 billion won ($9.54 million) as of the end of the quarter ended September, with revenue of 692.2 billion won

On Friday, shares of LG Hausys closed 2.36 percent down at 49,600 won.

By Kang Woo-seok and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]