LG announced that it will move two of the six production lines in the Gumi factory in South Korea to its Indonesia facility in Cibitung in order to increase efficiency and capacity for TV production.

LG said it is expanding the TV business with the aim to “diversify its production footprint and step up capacity,” and moving TV production lines from South Korea to Indonesia is one of the strategies. The Korean company plans to turn its Cibitung facility in Indonesia into a new regional hub and expects the transformation to boost the efficiency of LG’s TV manufacturing across the globe.

(Image: LG)

The move also enables LG to response to the increasing demands in Asia and Australia. With the expansion and upgrade, LG Cibitung will increase its annual capacity by up to 50%.

LG announced earlier this year that it will stop LCD TV panel production in South Korea by the end of the year. The company reported an on-year revenue drop in double digits and business loss for the first quarter of 2020. Facing the challenges of severe price competition and weak end market this year, LG is trying to transform its structure to optimize production and focus on high-end products.