LG to inject W600b to renovate outdated Changwon factory

In preparation for the “fourth industrial revolution,” LG Electronics announced a mid-term plan to build smart production lines for major kitchen appliances in Changwon, South Gyeongsang Province, with the goals of maximizing efficiency and improving product quality.

By 2022, the company will spend a total of 600 billion won ($527 million) on renovating outdated production lines in plant No. 1 of the Changwon complex, about 300 kilometers southeast of Seoul.

The renewed lines will produce kitchen appliances including refrigerators, ovens, water purifiers and dish washers from 2023. 

First built in 1976, the Changwon factory has the oldest production facilities.

The Changwon complex has served as the control tower of 19 production facilities operated by LG across the world, including a new one currently under construction in Tennessee.

“LG plans to bring the smart factory strategy to both Changwon and Tennessee, making the two production facilities major hubs of the global production lines,” said Oh In-sik, chief of the production technologies center in Changwon.

The company said that the new smart factory would have big data and Internet of Things-based intelligent production lines, simplifying assembly processes and ensuring more efficient procedures through real-time monitoring.

“As products get larger and larger as they are based on modular designs, we are seeing a rising need to make assembly lines simpler and more efficient,” Oh said.

Existing facilities will be temporarily moved to a nearby plant for continuation of production until the renovation is completed.

By Song Su-hyun (song@heraldcorp.com)