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LG EXPANDS APPLIANCE PRODUCTION LINES IN EUROPE

LG Aiming for Top Position in Region for Washing Machines and Refrigerators

LG Electronics (LG) broke ground on the opening of a new production line in Wroclaw, Poland, capable of manufacturing one million washing machines and the expansion of a refrigerators line raising its output of refrigerators from 300,000 units to one million annually.

The new production lines in Wroclaw will enable LG to respond better to a range of local consumer needs and demands. A key benefit is in the reduction of time required for shipment. Previously, washing machines and a large proportion of refrigerators were shipped from Korea and China, requiring more than a month for delivery to Europe. However, with the new Wroclaw facility, the maximum time required for shipment throughout Europe will only be five days, less for closer destinations. Supply chain costs will also decrease as costs associated with transportation, storage and operations are reduced. The local economy is already reaping the benefit of the expansion, with the hiring of 800 additional workers and a 36 percent increase in local business partnerships.

“The Wroclaw facility will be LG’s cornerstone for becoming the number one refrigerator and washing machine brand in Europe by 2015,” said Young-ha Lee, President and CEO of LG Electronics Home Appliance Company. “Our new production lines will enable us to make more products that meet the higher standards of European consumers right here in the same region where these appliances will be used.”

The refrigerators produced in Wroclaw are LG’s signature side-by-side, two-door bottom freezer and Larder & Freezer models. The highly energy efficient side-by-side has an A++ energy rating, while the bottom freezer is rated an outstanding A+++. The bottom freezer is equipped with the No Plumbing feature that eliminates the need to connect the refrigerator to a water source. These two energy-efficient refrigerator models rely on LG’s Linear Compressor technology which makes the refrigerators more energy efficient and keeps food fresh longer.

The new production facility will also cover a wide range of washing machines from conventional to premium models. It will increase output to meet the high demand for the Front Load Washing Machine with Inverter Direct DriveTM Technology and the 12kg 6 Motion Direct DriveTM with A+++-20% energy rating offers consumers 20 percent more energy savings compared to washing machines with A+++ rating.

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