South Korean manufacturer, LG Electronics Inc., will relocate its television (TV) production lines to Indonesia, as part of the global production efficiency amid the COVID-10 pandemic. The six production lines at its TV plant in Gumi, some 260 kilometers south of Seoul, will be moved to its factory in Cibitung, within this year at the earliest.
It said, the move is part of a larger picture to realign LG’ production strategy to be more closely aligned with shifting demand. Increasing capacity at the Indonesian site will allow the company to better supply consumers in Asia and Australia. The greater European market will continue to be supplied by the Mlawa plant in Poland, while Reynosa and Mexicali in Mexico will be the primary source of TVs for LG in North America.
Established in 1995, the Cibitung plant will see its annual production capacity increase by 50% after realignments are completed, said LG. In the first quarter of 2020, the producer’ TV business saw operating income of 326 billion Won (US$250.86 million), a rise of 31.7% from the year prior, for the first quarter.
