LG’s cellular division has seen a tricky couple of years – the previous few era of smartphones haven’t been very profitable for the corporate, and consequently the division has reportedly making a loss for 10 straight quarters.
According to Yonhap News Agency, LG is planning to close down smartphone manufacturing in its home Korean Pyeongtaek plant and shifting manufacturing over to its present services in Vietnam. Reportedly, the Korean plant was principally liable for high-end mannequin manufacturing, which would come with telephones such because the current V40 sequence or the brand new LG G8.
The transfer, whereas assuaging LG’s stability sheet and losses, doesn’t appear too promising when it comes to the way forward for the cellular division, because it continues to wrestle with delivering aggressive merchandise. We’ll be overlaying the LG G8 in a full overview quickly.
Update: LG has issued an official assertion:
Relocating our smartphone manufacturing operation from Pyeongtaek, South Korea to the newly expanded campus in Haiphong, Vietnam is all half of a bigger technique to enhance our cellular enterprise and to lift our aggressive edge in an evolving trade.
This relocation is a part of a broader capital funding to develop LG’s smartphone enterprise because the Haiphong Campus, which commenced operation in 2015 with a USD 1.5 billion funding, is ideally suited to tackle the duty of manufacturing prime quality, aggressive merchandise for the worldwide market.
LG will profit from the enlargement of efficiencies and synergies as Haiphong was designed with the aptitude to fabricate all kinds of merchandise, from washing machines and TVs to auto infotainment methods and smartphones. The majority of the Pyeongtaek workforce might be relocated to Changwon, South Korea to assist LG’s fast-growing house equipment enterprise.
