'Mobile Withdrawal' LG Electronics to Integrate Operations at One Production Facility in Brazil

Brazil Government Approves LG Electronics Manaus Factory Expansion Plan... 150 New Hires
Consolidation of Existing Manaus and Taubate Sites into Manaus Factory
Taubate Factory's Laptop and Monitor Production Equipment Relocated to Manaus

[Asia Economy Reporter Eunmo Koo] LG Electronics, which announced its withdrawal from the mobile business last month and began relocating its production facilities, has decided to consolidate its local production in Brazil, previously operated through a two-track system with Manaus and Taubate, into a single Manaus factory.

According to LG Electronics' Global Newsroom on the 31st, the Brazilian government approved LG Electronics' plan on the 11th to expand the Manaus factory, located in the northwest of the Amazon, by 12,000㎡ (approximately 3,630 pyeong).

Following the Brazilian government's approval for factory expansion, LG Electronics will invest 325 million Brazilian reais (approximately 69 billion KRW) to expand the Manaus factory and establish production lines for laptops and monitors. The Manaus factory is scheduled to begin production on these lines starting in July. An LG Electronics official explained, "The Taubate factory will be closed through liquidation, and from now on, operations will be consolidated and run through the Manaus factory."

LG Electronics had been operating its Brazilian business with a dual structure in Manaus and Taubate. The Manaus factory, established in 1995, has produced TVs, microwaves, DVD players, and air conditioners, while the Taubate factory, completed in 2005, produced mobile phones as well as laptops and monitors. After the relocation is completed, only a small number of call center employees are expected to remain in Taubate.

With the factory consolidation, LG Electronics has become the fourth largest employer in Amazonas state. The expansion and relocation will create 150 new jobs, increasing the total workforce at the Manaus factory to about 2,200 employees. Wilson Lima, governor of Amazonas, said, "The Manaus factory is expected to create more than twice the number of employment opportunities than anticipated," adding, "Since the factory expansion is likely to help promote regional economic growth, it will be a win-win for everyone."

Seoyoungmoo, head of LG Electronics' Manaus production corporation, stated, "LG Electronics will continuously provide local employment opportunities and offer uninterrupted services to customers and partners throughout Latin America," and expressed gratitude, saying, "We thank the Brazilian government and Amazonas state for supporting this project and recognizing the value to the regional economy and community."

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