SEOUL, March 8 (Yonhap) -- LG Electronics Inc. has revamped its overseas auto parts production bases, industry insiders said Monday, in a move to beef up its automotive solutions business for future growth.
LG recently completed closure of its plant in Kunshan, southeastern China, which had been producing vehicle infotainment components, such as audio, video and navigation (AVN), according to industry sources.
The move was part of the company's plan to enhance manufacturing efficiency in its automotive business, according to the sources. LG Electronics' overseas vehicle infotainment parts production will now be handled at its plant in Haiphong, Vietnam.
With the latest decision, LG's automotive electronics production in foreign countries will come down to two major sites, with its plant in Nanjing, China, responsible for manufacturing electric vehicle (EV) powertrain parts and the Vietnamese factory focusing on vehicle infotainment components.
On home turf, LG's plant in Incheon, west of Seoul, has been rolling out EV powertrain parts, while its facility in Pyeongtaek, south of Seoul, has been producing components for infotainment systems.
To boost its automotive business, LG last year announced that it will invest US$300 million in its plant in Nanjing, China, to expand its EV powertrain parts manufacturing line.
LG Electronics, one of the key home appliance makers in South Korea, has been focusing on bolstering its automotive business in recent years for its future growth.
Last year, the company announced it will establish a joint venture with Canadian auto parts maker Magna International Inc. that will produce EV powertrains. In 2018, LG acquired ZKW Group, an Austria-based company that leads the automotive lighting sector.
LG's vehicle component solutions (VS) division posted an operating loss of 2 billion won (US$1.76 million) in the fourth quarter of 2020. The company aims to turn around its VS division this year.
S. Korea mistakenly fires machine gun near border with N. Korea
S. Korea's new COVID-19 cases fall below 20,000 ahead of lifting of indoor mask mandate
(LEAD) N. Korea rejects alleged arms trading with Russia, warns of 'undesirable result'
(Yonhap Interview) NATO chief calls for stronger security ties with S. Korea to address China, other global challenges
Japanese teen romance film attracts 1 mln Korean viewers for 1st time in 21 yrs