LG Electronics to Establish Asia TV Production Hub in Indonesia

Relocation of Two TV Production Lines from Gumi Plant to Indonesia

A view of LG Electronics Gumi Plant in Gumi National Industrial Complex.

[Asia Economy Reporter Dongwoo Lee] LG Electronics is relocating 2 of the 6 TV and signage production lines at its Gumi plant to Indonesia. The company plans to develop its Indonesian TV factory as a dedicated production hub supplying TVs to the Asian market.

LG Electronics announced on the 20th that it will significantly expand the TV production capacity at its Cibitung factory in Indonesia as early as this year, nurturing it as a key TV production base for the Asian region.

Completed in 1995, the Cibitung factory currently produces TVs, monitors, and signage. By expanding automation equipment across all processes including assembly, quality inspection, and packaging, production capacity will increase by 50%.

This move reflects LG Electronics' intention to strengthen a regional hub production system led by the Gumi plant, the 'mother factory' of global TV production. The plan is for the factories located in Cibitung (Indonesia) for Asia, Mława (Poland) for Europe, and Reynosa and Mexicali (Mexico) for North America to each exclusively supply TVs to their respective markets.

LG Electronics aims to enhance productivity and efficiency at these regional hub production bases while maintaining the strategic importance of domestic production sites. The Gumi plant will focus on its role as the mother factory and control tower supporting global TV production.

The number of TV and signage production lines at the Gumi plant will be adjusted from six to four, with these lines dedicated to producing top-tier premium TVs requiring advanced production technologies such as rollable and wallpaper TVs, as well as medical monitors. Research will also be conducted to verify mass production feasibility of new products and improve production efficiency.

LG Electronics plans to reassign all employees at the Gumi plant, including office and technical staff, without any forced restructuring. Most of the approximately 500 TV-related employees will continue working on TV production lines and solar module production lines within the same plant.

Some employees will relocate to LG Digital Park in Pyeongtaek, Gyeonggi Province, where they will support TV-related services and research and development tasks.

LG Electronics will actively support employees moving to Pyeongtaek to help them adapt quickly. Support measures include special loans, relocation allowances, leave for moving, and weekend transportation to ease housing arrangements and changes in the work environment. LG Electronics will establish detailed support plans after thorough consultation with labor unions.

Previously, since 2015, LG Electronics has consolidated TV production sites such as Rayong in Thailand, Shenyang in China, Wrocław in Poland, Haiphong in Vietnam, and Almaty in Kazakhstan into nearby production locations.

An LG Electronics official stated, "This is part of our flexible response to the rapidly changing business environment, including intensified price competition, by improving production efficiency amid stagnant global TV demand."

This content was produced with the assistance of AI translation services.