Affected by the weakening consumer demand of New Coronary Pneumonia (COVID-19), LG Electronics has suspended production overseas for several occasions. On Friday (24th), it was reported that it has suspended part of its Changwon factory, which mainly produces household appliances in South Korea. Operation, which includes production lines for ovens and air conditioners.
This is the first time for consumer electronics giant LG Electronics to temporarily suspend production lines in China for inventory adjustments. Industry sources pointed out that part of the shutdown of Changwon factory began on Monday (20th), and has now suspended the production line of ovens exclusively for the North American market. It is expected to continue to shut down until May 15th, in addition, the air-conditioning production line will stop production for 2 days from April 28th to 29th.
Due to the global downtime caused by the new coronary pneumonia pandemic, the supply chain was interrupted. LG Electronics has stopped production at many overseas factories. Currently, it has stopped automobile electronics plants in the United States, televisions and home power plants in Russia, and household appliance production lines in Poland In order to comply with local home office policies, LG Electronics extended the shutdown time of the Mexican TV plant and the Indian home appliance and mobile phone plant.
In addition, according to a Reuters report, anonymous sources revealed that LG Electronics plans to suspend the production of mobile phones in South Korea this year and shift the production line to Vietnam due to the continuous loss of LG's mobile phone department in the past.
Market analysts said that LG's mobile phone business has suffered losses for seven consecutive quarters, and the price competition in the global TV market has intensified, which may affect LG Electronics' first-quarter financial performance.
