LG Electronics reportedly plans to halt mobile phone manufacturing in its home market and shift production to an existing plant in Vietnam, in its latest bid to turn its struggling device division around.
Yonhap News Agency reported the company would phase-out handset production in South Korea by the end of 2019. The manufacturing plant accounts for between 10 per cent and 20 per cent of the company’s total smartphone output, consisting mainly of high-end models.
Instead, it will boost production in Vietnam, the news agency reported, as it looks to drive a turnaround in the struggling mobile business by reducing manufacturing costs.
The unit has been in the red since Q2 2017, most recently reporting an increased operating loss of KRW322.3 billion ($280 million) in Q4 2018.
LG said it plans to push 5G products and smartphones going forward as part of recovery efforts.
The company also has smartphone production bases in China, Brazil and India.Subscribe to our daily newsletter Back