[Edaily Reporter JAEMIN SONG ] LGELECTRONICS is accelerating its push into the “Global South” market by launching a refrigerator production plant in Brazil with an annual capacity of 600,000 units. The company’s strategy is to enhance cost competitiveness through local production and expand its business not only in the Brazilian domestic market but also throughout Latin America.

LGELECTRONICS announced on the 16th that it held a ceremony to mark the launch of its new plant in Paraná, Brazil, on the 13th (local time), attended by Paraná Governor Laçinho Jr. and Song Sung-won, LGELECTRONICS’ Head of Latin America.

The Paraná plant is LGELECTRONICS’ second production base in Brazil, following the Manaus plant in Amazonas State, which was established in 1996. It has an annual production capacity of 600,000 refrigerators.

The new plant has implemented smart factory solutions based on artificial intelligence (AI) and industrial robots. Vision AI is used to inspect product quality, and digital twin technology is utilized to proactively detect signs of abnormalities on the production line. Automation equipment, such as articulated robots, handles hazardous tasks—such as transporting refrigerator doors—thereby enhancing both production efficiency and safety.

LGELECTRONICS had previously imported refrigerators manufactured in Southeast Asia into Brazil. With the launch of the Paraná plant, the company has established a local production system, enabling it to reduce logistics costs and manufacturing expenses while shortening the time to market for new products.

The company is also expanding the production of products tailored to the local market. Refrigerators produced at the Paraná plant feature a “dual-voltage” function to accommodate Brazil’s power environment, which varies between 127 volts (V) and 220 V depending on the region. They also include LED sterilization and rapid cooling functions designed to address the hot and humid climate and the country’s culture of hosting home parties.

The launch of this new plant aligns with LGELECTRONICS’ “Global South” growth strategy. LGELECTRONICS is pursuing a two-track strategy: focusing on sales of premium products in developed markets such as North America and Europe, while targeting the “volume zone”—the mass consumer market—in emerging markets.

In key Global South markets—India, Brazil, and Saudi Arabia—LGELECTRONICS recorded combined sales of approximately 6.2 trillion won last year. This represents an increase of more than 20% compared to 2023, exceeding twice the company’s overall sales growth rate for the same period.

The Paraná plant can also serve as a future export hub for South America. This is because it is adjacent to key countries such as Argentina and Uruguay and can benefit from the duty-free privileges offered by MERCOSUR, the South American economic bloc.

Baek Seung-tae, Executive Vice President and Head of the Home Solutions Business Division at LGELECTRONICS, said, “Based on our expanded production capacity, we will ensure a stable supply of products and introduce home appliances tailored to local markets,” adding, “We will continue to strengthen our position in the Brazilian and Central and South American markets.”