Posted on : Friday 22nd May 2020 03:57 PM
South Korea electronics giant LG Electronics Inc. will relocate two of its six television (TV) production lines at home to Indonesia as early as by the end of this year to enhance operational efficiency amid intensifying competition in the global TV market, the company said on Wednesday.
LG Electronics currently runs six domestic TV lines in Gumi, North Gyeongsang Province, in which organic light-emitting diode (OLED) TVs, liquid crystal display (LCD) TVs, and computer monitors are mainly churned out. Of the six production lines, LG Electronics plans to relocate two to its factory in Cibitung, Indonesia, later this year.
The move will ramp up the company’s TV production capacity in the Southeast Asian country, promoting the Indonesian factory as its Asian TV production base. The Cibitung plant – built in 1995 – currently produces TVs, monitors, and signage monitors.
Along with the relocation, LG Electronics plans to add more automation factory systems ranging from assembly, quality control, and packaging, to boost production capacity by 50 percent.
The company expects this relocation should help it meet consumers’ different demands for different segment TVs more effectively amid softening global TV demand. This is part of its efforts to promptly respond to the fast-changing business environment amid intensifying price and technology competition, it said.
The move will make its Cibitung plant exclusively responsible for TV supply in Asia, Mlawa plant in Poland for the European market, and Reynosa and Mexicali in Mexico for the North American market.