LG Realigns Global TV Manufacturing Strategy To Follow Shifting Demand
In what could be a good news for the advancement of new TV technologies while increasing availability of television sets around the world, LG Electronics revealed Wednesday that it is expanding and realigning ts global TV production business to further diversify its production footprint and step up capacity, particularly in Asia.
The South Korean company said the key component of this new direction is its production site in Cibitung, Indonesia, which is to become the company’s new regional hub, taking over two of the six production lines currently running at its Gumi, South Korea industrial park.
“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,” LG said in the new production strategy announcement.
The company explained that the latest adjustment is part of a larger initiative aimed at realigning LG’s production to more closely follow shifts in demand.
“Increasing capacity at the Indonesian site will allow LG to better supply consumers in Asia and Australia,” the announcement said. “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.”
The Cibitung facility, which was established in 1995, is to be upgraded with advanced automation across all production processes including assembly, quality inspection and product packaging to produce TVs, monitors and digital signage products. LG said it expects the upgrade will enable it to increase annual production from LG Cibitung by up to 50 percent.
Further, LG said its role for the Gumi operations is to serve “as the control center for LG’s TV and related display businesses worldwide.”
This will become even more important as the focus shifts to the manufacture of high-tech displays such as LG’s ultra-premium TVs and medical monitors, LG said. Gumi will be the center of research and the testing ground for more efficient manufacturing processes.
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By Greg Tarr
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