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|LG Electronics will convert its smartphone production in Haiphong to produce home appliances|
The move follows LG's decision to withdraw from the mobile business in April, according to Yonhap newswire. Since then, LG has been actively relocating its mobile workforce and resources to its core home appliance segment in a bid to fully exit from its loss-making mobile division by July 31.
LG has witnessed surging demand for its premium appliances in light of the stay-at-home trend during the pandemic.
In April, LG Electronics Vietnam was reported to be looking for a buyer for its Haiphong smartphone factory for $90 million. However, at a meeting with leaders of the Ministry of Planning and Investment's Foreign Investment Agency, the company's leader refuted the news and stated that the LG Electronics factory in Haiphong will remain in operation.
The factory in Haiphong was invested $1.5 billion to manufacture smartphones, TVs, air conditioners, vacuum cleaners, and washing machines. It also provides after-sales services, installation, maintenance, repair, and other services for all LG products.
LG Home Appliance & Air Solution Company generated first-quarter sales of $6.03 billion, an increase of 23.8 per cent from the previous year. Operating profit of $826.39 million was 22.1 per cent higher than the first quarter last year, according to LG's first-quarter 2021 financial results.
LG said that for the second consecutive quarter, the appliance business division saw significant on-year growth in North America and Europe as well as in its home market of South Korea where the rental business is particularly healthy. Profitability was accompanied by stable growth led by strong sales of premium products in North America and Europe. The business unit expects to see continued growth by expanding overseas sales in new products.