LG Electronics has secured an annual production capacity of 600,000 refrigerators in Brazil. This move marks the establishment of the company's second production base in the country, reinforcing its strategy for local manufacturing and exports to South America.
According to industry sources, LG Electronics began operations at its new factory in Paraná on August 13. This facility is the company's second production site in Brazil, following the establishment of its Manaus plant in Amazonas in 1996. The Paraná plant is capable of producing 600,000 refrigerators annually.
The new factory incorporates smart factory technology utilizing AI and industrial robots. Vision AI is employed for product quality inspection, while digital twin technology monitors production line anomalies. Automated equipment is used for tasks such as transporting refrigerator doors.
The shift to local production is also aimed at reducing logistics costs. LG Electronics plans to increase the proportion of locally produced goods, moving away from its previous model of importing products from Southeast Asia. This change will enable the company to respond more swiftly to fluctuations in demand within the Brazilian market.
Products will be tailored to local consumption needs. Brazil uses both 127V and 220V voltage depending on the region, so the Paraná plant will manufacture refrigerators that support both voltages. Features such as LED sterilization and rapid cooling have been designed with the country’s hot and humid climate and lifestyle in mind.
The growth potential of Brazil's home appliance market is also a factor behind the expansion of local production. According to market research firm Mordor Intelligence, Brazil's home appliance market is projected to grow from $33.6 billion in 2026 to $45.3 billion by 2031, with an average annual growth rate of 6.12%.
The Paraná plant will serve not only the domestic market but also as an export hub for South America. Its location in southern Brazil provides proximity to key markets such as Argentina and Uruguay, and it can take advantage of Mercosur's tariff benefits.
LG Electronics links this expansion of production facilities to its global growth strategy in the Global South. The company aims to enhance local production and product localization in high-growth markets like India, Brazil, and Saudi Arabia. LG has set a goal to double its revenue in these three countries by 2030.
According to local media in Brazil, LG Electronics plans to increase production capacity at the Paraná plant based on market demand after initially starting with an annual output of 600,000 units.
Baek Seung-tae, Vice President of LG Electronics' Home Appliance Business Division, stated, "With the expanded production capacity of the new Paraná plant, we will ensure stable product supply and introduce locally tailored home appliances." LG Electronics plans to further expand its production and export range in the South American market based on the Paraná facility.
* This article has been translated by AI.
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