LG Electronics opens second Brazil plant to press Global South push

By Kim Dong-young Posted : August 16, 2026, 10:37 Updated : August 16, 2026, 10:37
LG Electronics' plant in Parana, Brazil/ Courtesy of LG Electronics
 
SEOUL, August 16 (AJP) - LG Electronics has begun production at a new home-appliance plant in Brazil, deepening its drive into the Global South as the South Korean group leans on emerging markets to offset softening demand in the developed world.

The factory in Parana state started operations on Thursday, the company said Sunday, becoming its second production base in Brazil after the Manaus plant established in the Amazonas state in 1996. The site can turn out about 600,000 refrigerators a year.

The plant runs on a smart-factory system built around artificial intelligence and industrial robots, using vision-AI inspection and digital-twin technology to detect faults on the line before they arise, while multi-joint robots cut manufacturing costs and improve worker safety.

The refrigerators are tailored to Brazilian homes, carrying a dual-voltage function suited to a grid that runs at 127 volts in some regions and 220 volts in others, along with sterilization and rapid-cooling features aimed at the country's hot, humid climate and home-party culture.

LG plans to use Parana as an export hub reaching Argentina, Uruguay and other South American markets.

"Building on the expanded capacity from the new Parana plant, we will secure stable supply and offer locally tailored appliances to raise our standing in Brazil and across Latin America," said Baek Seung-tae, head of LG's HS division.

AJP Takeaways

• LG Electronics has brought its second Brazilian plant online, shifting refrigerators for the region from imports to local assembly and shortening its supply lines into Latin America.

• The Parana site anchors a "Global South" strategy — premium goods for developed markets, volume-zone products for emerging ones — after revenue across India, Brazil and Saudi Arabia rose more than 20 percent last year.

• For Korea's flagship appliance maker, the plant is as much a hedge against saturated Western demand as a beachhead for exports to Argentina, Uruguay and beyond.

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