LG smart move: To make home devices in phone units
image for illustrative purpose
Seoul 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.
