LG will take part of the Korean TV production to Indonesia to cut costs

LG перенесет часть корейского производства телевизоров в Индонезию для снижения расходов

Company LG Electronics will outsource part of its production of TVs from his native South Korea to Indonesia as part of a global restructuring to improve efficiency. Two of the six production lines of the Korean city of Gumi will be transferred to the plant of the company Cibitung in Indonesia.

According to LG, this step will increase the efficiency of production of TV sets that will allow the company to better serve the needs of consumers in Asia and Australia. According to LG, the factory in Cibitung annual production capacity will increase by 50 %. Meanwhile, Europe will continue to receive their television sets LG with the company’s plant in the Polish Mlawa, and its plants in the Mexican cities of Reynosa and Mexicali will continue to supply products to North America.

The LG spokesman said that the decision was not influenced by recent stopping some production lines of the company due to the pandemic COVID-19, which prompted the company to further diversify its production capacity. Although we note that the city Kumi is located near the city of Daegu, where in South Korea began a surge of diseases COVID-19.

The new measure LG is a continuation of efforts to reduce costs. The company also plans to release a 48-inch version of its OLED TV advertised in the first half of this year in an effort to reduce prices to its proposal to better compete with the offerings Samsung using QLED.

LG operating profit from the television business for the first quarter amounted to 326 billion won, which is a 31.7 % more than the year before. However, LG, and Samsung, warned of falling profits in the second quarter, as it is expected that the demand for smartphones and TVs will be reduced because of the pandemic, COVID-19.