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LG Electronics Inc streamlined its overseas auto parts production bases to enhance manufacturing efficiency for future growth.
The South Korean company closed its vehicle infotainment parts plant in Kunshan, southeastern China, and transferred its production to its plant in Haiphong, Vietnam.
The vehicle infotainment parts include audio, video, and navigation.
LG's automotive electronics production in foreign countries will now come down its plant in Nanjing, China, responsible for manufacturing electric vehicle (EV) powertrain parts and the Vietnamese factory focusing on vehicle infotainment components.
LG will invest $300 million in its Nanjing, plant to expand its EV powertrain parts manufacturing line.
The move was part of the company's plan to the sources. LG Electronics'
LG's plant in Incheon has been rolling out EV powertrain parts, while its facility in Pyeongtaek has been producing infotainment systems components.
LG Electronics, a key home appliance maker, has been bolstering its automotive business.
In 2018, LG acquired Austria-based ZKW Group, which leads the automotive lighting sector. It will also establish a joint venture with Canadian auto parts maker Magna International Inc. to produce EV powertrains.
