SEOUL, June 1 (Yonhap) — LG Electronics Inc. is quick changing its abroad smartphone manufacturing strains into services that produce house home equipment, trade insiders mentioned Tuesday, following its determination to withdraw from the cellular enterprise.
LG mentioned the Brazilian authorities final month accredited its plan to increase its Manaus plant in Amazonas, northwestern Brazil, in a transfer to shift its manufacturing strains from the Taubate website on the east coast.
When the US$62 million challenge is accomplished, LG Electronics may have new manufacturing strains for laptops and displays on the Manaus plant.
The South Korean tech large mentioned all of its Brazilian manufacturing shall be consolidated in Manaus down the street.
Began in 1995, the Manaus plant was initially established to fabricate TVs, microwave ovens and DVD gamers, with air conditioners added in 2001. The Taubate plant has been in operation since 2005, producing cell phones, displays and laptops.
The most recent relocation follows LG’s transfer in April to transform its smartphone line on the Haiphong plant to make house home equipment in northern Vietnam.
LG earlier introduced it’ll exit from the cellular enterprise by July 31 after years of money-losing performances. Since then, it has been working to relocate its cellular workforce and assets to its core house equipment enterprise.
Demand for LG’s premium home equipment has been hovering on the again of the pandemic-induced stay-at-home development.
LG’s house equipment and air answer (H&A) unit within the first quarter posted 6.7 trillion gained (US$6 billion) in income and 919.9 billion gained in working revenue, each the most important for its quarterly efficiency.
The utilization fee of its house equipment manufacturing strains reached a five-year excessive within the first quarter of the 12 months, in line with LG. The speed for the fridge manufacturing strains stood at 153.2 p.c, whereas that of air conditioner and washer manufacturing services got here to 142.8 p.c and 114.4 p.c, respectively.
A fee over 100% signifies that the corporate is absolutely operating its productions strains and moreover working services with further work.
The utilization fee of LG’s washer and fridge strains had been within the 80 p.c vary within the second quarter of final 12 months. Nevertheless, it recovered to 100% within the fourth quarter of 2020.