AJP Asia Intelligence Agency

LG Electronics' Tennessee Plant Surpasses 10 Million Units in Production

LG Electronics' manufacturing facility in Tennessee has achieved a cumulative production of 10 million units. This milestone comes eight years after the plant began operations in 2018, solidifying its status as a local hub for appliance manufacturing.

On November 13, LG Electronics held a celebration at its Tennessee plant located in Nashville to mark the 10 million unit production milestone, the company announced on November 15.

The factory spans approximately 1.25 million square meters (about 38 acres) and has seen an investment of $500 million to date. Production began with washing machines in November 2018, followed by dryers in 2022 and wash towers in 2023. The current annual production capacity stands at 2.25 million units, including 1.55 million washing machines and 700,000 dryers.

Thanks to the establishment of a local production system, LG Electronics has significantly increased its market share in the U.S. washing machine sector. According to market research firm Traqline, LG's market share for washing machines and dryers reached 23.3% and 24.1%, respectively, last year, both ranking first. These figures represent a substantial increase compared to 2018, when the market shares were 17.2% for washing machines and 17.4% for dryers.

Utilizing its Midwestern U.S. base has reduced the time for store displays from over 10 weeks to about one week, while also lowering shipping costs and tariffs. The design of the top-loading washing machines has been tailored to meet North American consumer preferences, incorporating features like a 'pet care' cycle and built-in style wash towers.

In 2023, the plant was recognized as a 'lighthouse factory' by the World Economic Forum (WEF), implementing around 300 industrial robots and AI and digital twin technologies to achieve a 70% automation rate in its processes.

Recently, LG introduced the humanoid robot 'LG Cloid' into the manufacturing environment to conduct proof of concept (PoC) tests for tasks such as transporting washing machine tops, establishing a virtuous cycle of physical AI data.

Baek Seung-tae, Vice President of LG Electronics' Home Appliance Business Unit, stated, "We achieved the cumulative production of 10 million units thanks to the consistent choice of North American customers. We will further solidify our leadership in the North American market based on differentiated products and AI-driven manufacturing innovation."





* This article has been translated by AI.