Amidst COVID-19 pandemic, LG Electronics has announced that it is expanding its TV business with an eye on further diversifying its production footprint and stepping up capacity.
With this strategy, LG’s Cibitung facility in Indonesia will become the company’s new regional hub, taking over two of the six production lines currently running in Gumi, South Korea. It’s worth mentioning that, Gumi will be the center of research and the testing ground for more efficient manufacturing processes.
The move is expected to boost the efficiency of LG’s TV manufacturing across the globe, with Gumi maintaining its status as the control tower and taking on more work for LG’s other growing businesses.
Furthermore, the company also said that the move is part of a larger picture to realign LG’s production strategy to be more closely aligned with shifting demand. This will also allow LG to better supply consumers in Asia and Australia.
However, 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.
According to the company, the Cibitung facility will be upgraded with advanced automation across all production processes including assembly, quality inspection and product packaging to produce TVs, monitors, and digital signage products. With the expansion and upgrade, LG Cibitung will increase its annual capacity by up to 50 percent.