LG Group Chairman Koo Bon-moo inspects LG Electronics’ LCD TV line in Gumi, North Gyeongsang Province, during his May tour of the conglomerate’s main production center. / Korea Times |
By Kim Yoo-chul
Staff Reporter
LG Electronics plans to move its flat-screen TV manufacturing line in Gumi, North Gyeongsang Province, close to Seoul as part of its effort to centralize production and boost management efficiency.
The plan by the world's third-biggest liquid crystal display (LCD) TV maker is in line with its strategies to beat Japan's Sony in the segment this year.
LG hopes to sell 18 million units of LCD TVs in 2009, LG officials say.
The company sees saving costs in logistics and human resources and relocating manufacturing lines for more efficiency is one of its top priorities.
"LG recently closed a showroom in Gumi ― some 260 kilometers southeast of Seoul ― in a pre-emptive measure to move the LCD TV line to Pyeongtaek," a source who is familiar with the situation told The Korea Times, Tuesday.
Under its plan, Gumi, its key production center, will focus on small-sized panels according to the source.
LG Electronics' flat-panel affiliate LG Display extended its flat-panel lines to mainly produce monitors and small-sized TVs. LG Electronics transformed one of its plasma TV lines into a solar cell production line.
LG is also moving its research and development (R&D) personnel out of Gumi.
Regional politicians and business lobby groups in the area are moving to persuade LG to drop the plan out of fears that it will set back the local economy. The company pulled out some R&D employees and reassigned them to Pyeongtaek.
"Some 300 research and development (R&D) staff members for TVs in Gumi will be relocated to Pyeongtaek by the latter half of this year," the source added, asking not to be identified.
An LG spokesman acknowledged the move but refused to talk further.
LG Group's seven affiliates including LG Electronics have invested some 2.2 trillion won in Gumi, according to company officials.
yckim@koreatimes.co.kr
LG Says No Plan Fixed
An LG spokesman said that the transfer of R&D personnel to Pyeongtaek is not planned for the second half of the year and that Gumi will remain as its global center of production.
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