LG Electronics Changwon Home Appliance Factory, a Major Transformation with Eco-Friendly and Smart Technologies

Completion of Phase 1 of LG Smart Park Integrated Production Building for Intelligent Autonomous Factory
Priority Execution of 480 Billion KRW out of Total 800 Billion KRW Investment
Goal to Complete 2 Buildings, 6 Lines with Total Floor Area of 336,000㎡ by 2024

Robots are assembling refrigerators on the refrigerator production line at the LG Smart Park Integrated Production Building in Changwon, Gyeongnam, which LG Electronics completed in the first phase.
[Photo by LG Electronics]

[Asia Economy Reporter Kim Heung-soon] LG Electronics is officially transitioning its Changwon plant, a key production base for its global home appliance business, into an intelligent autonomous factory system.

On the 16th, LG Electronics held the first completion ceremony for the newly reconstructed integrated production building at 'LG Smart Park' in Changwon, Gyeongnam. The event was attended by President Kwon Bong-seok, Vice President Ryu Jae-cheol, Head of the Home Appliance (H&A) Business Division, Ha Byung-pil, Acting Governor of Gyeongnam Province, Heo Seong-moo, Mayor of Changwon, and Son Mu-gon, Executive Vice Chairman of the Changwon Chamber of Commerce and Industry. LG Smart Park is the new name for the Changwon plant, selected through an employee contest.

LG Electronics is investing a total of 800 billion KRW to transform the existing Changwon 1 plant, which produces kitchen appliances, into an eco-friendly smart factory. Starting in 2017, approximately 480 billion KRW was invested over four years, leading to the commencement of the first phase of the integrated production building. Previously dispersed product-specific production lines in separate buildings have been consolidated into a single production building. With this first phase completion, production has begun on three lines: refrigerators, ultra-premium 'LG Signature' refrigerators, and water purifiers. By 2024, LG plans to complete an intelligent autonomous factory comprising two buildings?the integrated production building and the warehouse?with a total floor area of 336,000㎡ and six production lines.

Building the World's Best 'Intelligent Autonomous Factory'

The newly constructed integrated production building has significantly increased automation rates across all kitchen appliance production processes, including assembly, inspection, and packaging. An integrated monitoring system based on big data related to equipment, parts, and products has been introduced to enhance production efficiency and quality competitiveness. Additionally, LG Electronics has implemented a digital transformation of the home appliance production process by establishing a pre-quality prediction system using deep learning.

The logistics system has also been improved. Automation of parts logistics has been expanded through the introduction of new technologies such as intelligent unmanned warehouses and high-altitude conveyors, forming a three-dimensional logistics-based automatic supply system. LG Uplus's '5G dedicated network-based logistics robots (AGV)' automatically transport materials needed for appliance production within the factory, maintaining stable and uninterrupted communication connections. Furthermore, LG Electronics applied a 'modular design' approach, designing parts and solutions as standardized modules that can be connected like Lego blocks, reducing costs and time required for new product development.

LG Electronics stated, "Once the integrated production building is fully completed, the annual production capacity of the existing Changwon 1 plant, which was up to 2 million units, will expand to over 3 million units."

Revitalizing the Local Economy and Practicing Environmental Protection

LG Electronics is also contributing to job creation among its partners through the establishment of LG Smart Park in Changwon. According to LG Electronics, the number of employees at 11 major partner companies located in the Changwon area under the H&A Business Division has increased by about 10% compared to the previous year, reaching approximately 4,100 employees.

A total of 160,000 cumulative workers from 22 local construction companies participated in the first phase completion of the integrated production building. Going forward, LG plans to expand the establishment of intelligent autonomous factories across all LG Electronics production plants worldwide, using this site as a benchmark.

Upon completion of the new integrated production building, energy efficiency in product manufacturing is expected to improve by about 30% through the application of advanced energy facilities and technologies, such as the building energy management solution 'BECON.' The facility also ensures the highest level of safety through thorough seismic design.

Vice President Ryu emphasized, "Through continuous investment, we will establish Changwon, which has world-class production infrastructure, as a core base for targeting the global premium home appliance market."

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