Earlier this year, LG announced that it would stop making smartphones following years of making losses
Following its exit from the smartphone business, LG Electronics is now reportedly converting its overseas smartphone manufacturing factories into home appliances producing facilities, Yonhap news agency reported citing industry insiders.
As per LG, the Brazilian government has 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.
The $6 million expansion plan will provide the South Korean electronics giant with new production lines for laptops and monitors at the Manaus plant, as per Yonhap.
The Manaus plant was originally established in 1995 to manufacture TVs, microwave ovens and DVD players, adding air conditioners in 2001, while the Taubate plant has been producing mobile phones, monitors and laptops since 2005. LG added that all of its Brazilian manufacturing will be consolidated in Manaus down the road.
The tech company has also converted its smartphone line in a plant in Vietnam to make home appliances.
Earlier this year, LG announced that it would stop making smartphones following years of making losses. LG now seems to be gearing up to make its consumer electronics front stronger as it streamlines resources from the now-redundant smartphone line towards home appliances.
According to Yonhap, demand for LG’s premium appliances has been soaring on the back of the pandemic-induced stay-at-home trend.
The utilization rate of its home appliance production lines reached a five-year high in the first quarter of the year, according to LG.
The rate for the refrigerator manufacturing lines stood at 153.2 per cent, while that of air conditioner and washer production facilities came to 142.8 per cent and 114.4 per cent, respectively.
A rate over 100 per cent means that the company is fully running its productions lines and additionally operating facilities with extra work.
