BREAKING NEWS:LG Up TV Capaciity 50%, New Plant, Samsung, Hisense TCL Targeted
As the TV market gets brutally competitive LG has moved to increase their TV output by 50%, this will be achieved by moving production to low cost Indonesia while also allowing the Korean Company to take on Samsung, Hisense and TCL in the value TV market.
In a statement issued earlier today LG Electronics said that ‘At a time when many other manufacturers are cutting back, LG Electronics (LG) is expanding its TV business with an eye on further diversifying its production footprint and stepping up capacity.
ChannelNews understands that will go head to head with Samsung in the sub $2K TV market in Australia with a range that will also put pressure on both Chinese brands Hisense and TCL who are facing a backlash from consumers due to the spread of COVID-19 by Chinese nationals.
The key to LG’s new low-cost strategy is the bring online of the Companies new Cibitung facility in Indonesia which will become the company’s new regional hub, taking over two of the six production lines currently running at in Gumi, South Korea.
LG said that 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”.
The Company told ChannelNews that the strategic move is part of a larger picture to realign LG’s production strategy to be more closely aligned with shifting demand. Increasing capacity at the Indonesian site will allow LG to better supply consumers in Asia and Australia.
Established in 1995, the Cibitung facility will be upgraded with advanced automation across all production processes including assembly, quality inspection and product packaging to produce TVs, monitors and digital signage products. With the expansion and upgrade, LG Cibitung will increase its annual capacity by up to 50 percent.
LG Gumi’s role as the control centre for LG’s TV and related display businesses worldwide will become even more important as it focuses on the manufacture of high-tech displays such as LG’s ultra-premium TVs and medical monitors. Gumi will be the centre of research and the testing ground for more efficient manufacturing processes.