LG Electronics expands overseas plants as it shifts on new growth drivers after exiting phone biz

LG Electronics Inc. is expanding its production facilities in the US, Brazil, Vietnam, and Saudi Arabia to meet pent-up consumer demand as it shifts toward new growth drivers after dropping its mobile phone business.

Last month, the South Korean home appliance giant last month gained the Brazilian government's approval to invest $62 million in expanding its Manaus plant where it would relocate the monitor and laptop production lines from its mobile phone production line in Taubate.

The new laptop and monitor line in Manaus will make LG Electronics one of the largest employers in the state of Amazonas with its 2,200 workers.

LG Electronics exited the mobile phone business in April after accumulating operating losses of 5 trillion won and is instead shifting its focus on automotive parts, robotics, and home appliance.

The South Korean company is also converting its largest overseas smartphone production center in Haiphong, Vietnam to a home appliances plant as it completes the transition of production facilities and employee transfers in the country by the end of this year.

LG Electronics is also spending $20.5 million to ramp up capacity at its washing machine plant in Tennessee, which currently has an annual production capacity of 1.2 million washers.

The company had been posting double-digit sales growth in North America in the past few years.

Meanwhile, LG Electronics is running an air conditioner joint venture with a local company in Saudi Arabia and plans to use industrial robots and artificial intelligence systems to cut costs and improve productivity.

The company set its facilities investment in 2021 at 3.62 trillion won, up 41 percent from the previous year.