The South Korean firm LG Electronics is currently conducting a major reorganisation of its factories in Mexico and as part of the overhaul have decided to close one LCD TV factory and completely end mobile phone production in Mexico altogether.
LG Electronics have operations in three areas of Mexico. These are in Reynosa and Mexicali where LG manufacture LCD TVs and in Monterrey where they make refrigerators and ovens.
Over the next three years the company are planning to invest an additional $100 million USD in its new strategy which includes the following plans:
The two manufacturing plants located in Reynosa and Mexicali will be consolidated into one single plant in Reynosa meaning the Mexicali plant will have to close. The whole consolidation process is expected to be completed by September this year.
LG are ceasing production of mobile phone handsets in Mexico and shifting that part of the business to other factories in Korea and China.
LG are also planning to expand production of refrigerators and electric ovens in Monterrey, Mexico as well as introduce production of gas ovens by the end of the year.
So even with the loss the mobile phone production in Mexico other changes mean additional work for the people there so life’s still good.
The number of workers LG employs in Mexico is actually due to increase under the reorganisation even if initially around 500 jobs will be lost when the LCD TV factory in Mexicali closes its doors for the last time.
These 500 workers from the Mexicali factory who are about to lose their jobs will automatically be eligible for positions in Reynosa or Monterrey and those that are retiring will receive support packages and pensions in line with local legislation.
The new consolidated facility in Reynosa means 1200 new workers and the expansion in Monterrey means 1300 additional employees.
The LG group was established back in 1958 through a merger of two Korean companies, Lucky and Goldstar. Lucky was the name given to general household products produced and Goldstar was the brand name given to the electronics side of the business.
In 1995 Goldstar was renamed LG Electronics. LG standing for “Life’s Good”.
LG Electronics, has grown into a global leader in consumer electronics, and is currently the second largest producer of televisions and the third largest mobile phone producer in the world.
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