LG Electronics has accelerated its push into the “Global South” by starting operations at a new home appliance plant in Brazil, the largest consumer market in Latin America.

LG Electronics announced on the 13th (local time) that it officially began operating a new plant in the state of Paraná, Brazil. Following its Manaus plant in the state of Amazonas, established in 1996, this is the company’s second production base in Brazil and has an annual refrigerator production capacity of about 600,000 units. This means it can produce one refrigerator every 14 seconds.

With the start-up of the new plant, LG Electronics will be able to strengthen its competitiveness in the Brazilian home appliance market. By converting a substantial portion of the volume previously imported from Southeast Asia to local production, the company will reduce logistics costs and shorten product lead times to market. The new plant has introduced smart factory solutions based on artificial intelligence (AI) and industrial robots to lower manufacturing unit costs and enhance workplace safety.

The new plant will also produce appliances optimized for the Brazilian market. For example, in Brazil, rated voltages differ by region, such as 127V and 220V, so a separate transformer has been required when moving home or purchasing products for use in a different region. Refrigerators produced at the Paraná plant will feature a “dual-voltage” function that allows them to be plugged directly into outlets without a transformer. Reflecting Brazil’s hot and humid climate and frequent home party culture, the refrigerators will also be equipped with an LED-based sterilization function inside the compartment and a rapid cooling function that quickly lowers the temperature.

This investment is being evaluated as a decisive move in LG Electronics’ Global South strategy. LG Electronics is pursuing a “two-track strategy,” focusing on sales of premium products in markets such as North America and Europe, while expanding sales in the mass consumer (volume zone) segment in emerging markets such as South America, India, and the Middle East.

Brazil, with a population of more than 210 million, is a demographic giant, and its domestic home appliance market alone has been growing by about 6% per year on average. Analysts note that the plant can also serve as a strategic export base covering the entire South American region. Located in southern Brazil, the Paraná plant is close to major South American countries such as Argentina and Uruguay and can benefit from tariff-free treatment under Mercosur, the South American economic bloc. Baek Seung-tae, head of LG Electronics’ Home Solutions Business Division, said, “Based on the expanded production capacity through the new Paraná plant, we will strengthen our market position in Latin America by ensuring stable product supply and introducing locally tailored home appliances.”

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