LG has decided to close one of its factories that makes plasma panels for flat-panel TVs. According to the Wall Street Journal, the move is being seen that the technology is losing out in a key segment of the market.

However LG said it would close the oldest and smallest of its four plasma-panel factories, located in the city of Gumi in central Korea. It will save about $32 million a year in production costs for TV components.

The move will reduce the company's manufacturing capacity to 360,000 plasma panels a month from 430,000 now.

Plasma TVs have been losing ground to another type of flat-panel TV, liquid-crystal-display, or LCD, models, in the 37- and 42-inch screen sizes.

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