LG to Restructure Mexico Plants, Add US$100 Mln Investment
July 10, 2009
Korea-based LG Electronics announced on July 6
that it will restructure its three Mexican production bases into two and seek
to boost local production value to US$4 billion by 2012, Reuters reported on
July 7. LG Electronics plans to integrate its two separate LCD (Liquid Crystal
Display) TV plants in Reynosa and Mexicali into one in Reynosa for the
production of medium- to large-size and high-end TVs. Moreover, LG Electronics is
considering outsourcing the production of small- and medium-size LCD TVs to an
external manufacturer in Mexico. Consolidation of the two plants is slated for
completion by September 2009, and the company plans to cease mobile phone
production at the Mexicali plant following its shutdown in June. Meanwhile, the
plant in Monterrey will be expanded for home appliance production, too. Also,
LG Electronics expects to add an investment of US$100 million in Mexico over
the next three years to increase its local production value from US$2.6 billion
in 2008 to US$4 billion by 2012. It is estimated that the restructuring will
create around 2,500 jobs overall, according to the Reuters report.