LG Electronics is fast converting its overseas smartphone manufacturing lines into facilities that produce home appliances, industry insiders said on Tuesday, following its decision to withdraw from the mobile business.
LG said the Brazilian government last month approved its plan to expand its Manaus plant in Amazonas, northwestern Brazil, in a move to shift its production lines from the Taubate site on the east coast.
When the $62 million project is completed, LG Electronics will have new production lines for laptops and monitors at the Manaus plant.
The South Korean tech giant said all of its Brazilian manufacturing will be consolidated in Manaus down the road, reports Yonhap news agency.
Started in 1995, the Manaus plant was originally established to manufacture TVs, microwave ovens and DVD players, with air conditioners added in 2001. The Taubate plant has been in operation since 2005, producing mobile phones, monitors and laptops.
The latest relocation follows LG's move in April to convert its smartphone line at the Haiphong plant to make home appliances in northern Vietnam.
LG earlier announced it will exit from the mobile business by July 31 after years of money-losing performances. Since then, it has been working to relocate its mobile workforce and resources to its core home appliance business.
Demand for LG's premium appliances has been soaring on the back of the pandemic-induced stay-at-home trend.
LG's home appliance and air solution (H&A) unit in the first quarter posted 6.7 trillion won ($6 billion) in revenue and 919.9 billion won in operating profit, both the largest for its quarterly performance.
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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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