LG is one of the world’s leading manufacturers of televisions, with state-of-the-art facilities located across the globe. But where is LGs TV manufactured?
The location of LG’s TV production plants provides insight into the company’s global strategy. By operating factories in strategic locations worldwide, LG can optimize efficiency, tailor products to local markets, and avoid cumbersome export taxes and logistical challenges.
So where is LGs TV manufactured? Here’s an in-depth look at LG’s major TV production facilities across the continents.
Where is LGs TV Manufactured? A Look at LG’s Major TV Factories
LG TVs are primarily manufactured in South Korea, Mexico, Brazil, Poland, China, and Vietnam. The company operates sizable TV fabrication facilities in:
- Gumi, South Korea
- Reynosa, Mexico
- Taubate, Brazil
- Wroclaw, Poland
- Nanjing, China
- Hai Phong, Vietnam
These major plants allow LG to build TVs for both domestic sales and export around the world. The locations are strategically spread out across continents to optimize distribution logistics and free trade benefits.
Now, let’s take a closer look at each of LG’s biggest TV manufacturing hubs across the globe.
LG’s Flagship TV Plant in Gumi, South Korea
LG’s largest TV factory is located in Gumi, South Korea – about a 3 hour drive southeast from Seoul.
The Gumi complex is a massive facility sprawled across nearly 3 million square feet. It produces LG’s most cutting edge display technologies, including OLED and large-format LED/LCD panels.
The LG factory in Gumi primarily manufactures TV display panels. The panels are then shipped to other LG assembly plants where they are incorporated into full TV sets.
Gumi plays a dual role for LG – producing TV panels for both domestic Korean sales as well as overseas exports.LG has continued to invest heavily in the Gumi TV production hub, spending over $17 billion between 2015-2020 alone.
The strategic location of the Gumi plant near Seoul allows for rapid prototyping and product development. LG’s consumer electronics research teams are based out of Seoul. With Gumi just a few hours away, new display innovations can quickly transition from R&D to mass production.
Expanding TV Manufacturing in Reynosa, Mexico
North America is the single largest TV market for LG. As a result, the company has invested heavily in TV production capabilities in Mexico to serve this key region.
LG’s newest TV assembly plant is located in Reynosa, an industrial border city in northeast Mexico. The Reynosa facility was opened in 2019 and represents a $25 million dollar investment.
The LG Reynosa factory has rapidly expanded and is on track to become LG’s largest TV production base in the Americas. The plant manufactures a wide range of LG’s newest TV sets for both the US and Canadian markets.
Setting up manufacturing in Mexico provides LG with several key advantages:
- Cost Efficiencies: Labor and operational costs in Mexico are significantly lower compared to the US and Canada. This allows LG to price competitively and boost profit margins.
- Free Trade Benefits: Under NAFTA/USMCA, LG TVs assembled in Mexico can be imported duty-free across North America. This avoids costly tariffs had the TVs been built in Asia.
- Faster Logistics: With Reynosa located right on the US border, newly built TVs can be trucked efficiently to destinations across the US and Canada in just a few days.
As NAFTA incentives phase out by 2023, expect LG to ramp up additional TV production capacity in Reynosa to minimize import taxes.
Ramping Up TV Manufacturing in Taubate, Brazil
Latin America, especially Brazil, represents a major emerging TV market. To better compete in the region, LG recently opened a new TV fabrication plant in Taubate, Brazil.
The Taubate facility first began limited TV production in early 2018. By 2020, the factory dramatically expanded capabilities focusing on LG’s latest Nanocell 4K LED TV models.
LG invested nearly $350 million dollars to transform Taubate into a cutting-edge TV manufacturing complex. The plant has an annual TV production capacity of over 1 million units as of 2022.
Setting up local TV assembly in Brazil provides two major advantages for LG:
- Cheaper Distribution: LG avoids hefty import taxes on TVs entering Brazil from Asia. Local production significantly lowers costs.
- Tailored Products: Manufacturing in Brazil allows LG to develop TV models customized to Brazilian consumer needs and local standards.
As the Latin American TV market continues to grow, expect LG’s Taubate factory to take on an even more prominent production role.
Optimized Distribution Center in Wroclaw, Poland
Unlike LG’s plants in Mexico and Brazil focused on assembly, the Wroclaw facility in Poland serves as a distribution hub for the European markets.
Rather than manufacturing, Wroclaw specializes in warehousing, quality control, and logistics. TVs are shipped to Wroclaw from LG’s Asian factories. The Poland center then handles customization and distribution across Europe.
Strategically located in southwest Poland, Wroclaw provides efficient access to TV markets across Europe via ground and air transportation.
Key advantages of using the Wroclaw distribution center include:
- Pre-Sales Customization: LG can tailor TV software features and cosmetics at the Poland facility to match the preferences of different European countries.
- Lower EU Import Duties: Importing TVs first into the EUzone in Poland helps minimize cumulative tariff costs.
- Strategic Location: Wroclaw’s proximity to Germany and other West EU markets reduces shipping time and costs.
As LG expands market share in Europe, expect continued growth in imported TV volume through the company’s Wroclaw hub.
Ramping Up OLED TV Production in China
China is both a major sales market and manufacturing base for LG’s TVs. The company operates several TV production lines across two key factories in China:
- Nanjing, Jiangsu Province
- Hai Phong, Vietnam
The Nanjing facility produces LG’s most advanced OLED TVs. In 2021, LG invested $4.5 billion dollars to significantly expand the plant’s flexible OLED panel output for TVs. The Nanjing hub also manufactures LG’s newest large-format (77-inch to 88-inch) 8K LED TV models.
Meanwhile, the Vietnam factory focuses on mid-size LG LCD TVs from 43 to 65 inches targeted at Southeast Asian markets.
LG’s China plants serve the dual role of supplying TVs domestically within China as well as exporting sets to other Asian countries. Key advantages include:
- Cost Competitiveness: China and Vietnam benefit from cheaper labor and raw material costs compared to South Korea.
- Proximity to Key Markets: Nanjing and Vietnam provide quick access to fast-growing TV demand across China, Japan, and Southeast Asia.
- Expertise in Large-Format Manufacturing: LG’s China hubs provide unrivaled expertise in producing advanced large-screen OLED and LCD TVs.
Moving forward, expect LG to continue leveraging its strategic China facilities to drive leadership in large-format TV technology.
Why Does LG Manufacture TVs All Over the World?
LG’s global TV manufacturing strategy provides the company with several important advantages:
Lower Production Costs
Factors like labor, utilities, components, and raw materials vary significantly by region. By diversifying TV production worldwide, LG can optimize costs.
Avoid Import Duties
Manufacturing TVs within local markets helps LG avoid price-inflating import tariffs. This allows competitive TV pricing worldwide.
LG can tailor TV models produced at each factory to match local power systems, video standards, cosmetic preferences, and more.
Faster Delivery to Market
Regional plants minimize lead time and shipping costs to deliver new TVs faster to retailers and consumers.
Exchange Rate Hedges
Spreading manufacturing globally minimizes risks from currency fluctuations that may impact profitability.
Diversification Against Disruption
With production facilities worldwide, LG limits risk if any single factory experiences an outage from a natural disaster or pandemic.
Is LG Opening Any New TV Factories?
LG recently announced plans to open an all-new OLED TV factory in Q2 2024. The upcoming plant will be located in Ayagoz, Kazakhstan.
Positioned in central Asia, Kazakhstan may seem an unlikely choice. However, the country provides major incentives and low utility costs that will allow LG to price competitively with Chinese OLED brands.
The Ayagoz facility represents a $500 million dollar investment. It will be LG’s first new TV plant in over a decade.
Initial capacity is expected to be 70,000 OLED sheets per month – enough for over 1 million large-format TVs yearly. With demand for OLED TVs surging, the Kazakhstan plant will help LG boost production.
The Importance of Global Manufacturing for LG’s TV Business
LG’s broad portfolio of TV factories across the Americas, Europe, Asia, and beyond provides key competitive advantages. By optimizing cost efficiencies, distribution logistics, and local customization worldwide, LG can deliver the most advanced TV technology at mass market price points.
As consumer demand for ever-larger, higher resolution OLED and LED/LCD TVs continues to accelerate, LG’s global manufacturing and distribution network will be critical. The company’s strategic global footprint enables bringing the next generation of TV innovation to living rooms across continents.
LG TVs are manufactured through the company’s extensive worldwide production facilities. Key plants in South Korea, Mexico, Brazil, Poland, China, and Vietnam enable LG to build TVs that are competitively priced and tailored to local market needs.
With each region offering unique cost efficiencies, skill sets, and strategic advantages, LG’s global manufacturing is critical to the company’s market leadership in next-gen TV technology.
As demand grows for OLED and ever-larger LED/LCD TVs, expect LG to continue expanding its global footprint. New factories like the upcoming Kazakhstan OLED plant will help LG maintain its position at the forefront of TV innovation worldwide.