LG offered to sell a smartphone factory in Hai Phong for more than 2,000 billion

Immediately after announcing its decision to withdraw from the smartphone market, LG Electronics is taking next steps to suspend production at factories in Hai Phong (Vietnam), Taubate (Brazil) and Qingdao (China). . According to Korean media, LG has considered many options to optimize production activities at these factories but has not found breakthrough solutions.

Specifically, with the factory in Hai Phong – the largest smartphone factory of LG Electronics, LG hopes to find an acquisition partner. The factory now produces about 10 million smartphones a year, accounting for half of its production.

However, Business Korea said that it is difficult for LG to find a suitable partner because Vietnamese smartphone manufacturers have their own factories. Local companies are also not willing to pay 100 billion won (equivalent to 2.067 billion) to LG for this factory. Therefore, LG is considering selling only factory land.

A similar story happened with factories in Taubate and Qingdao. With a capacity of 8-9 million smartphones per year, LG will find it difficult to sell the entire production line. Even when the story of selling the Taubate factory appeared, the leaders and employees at the factory protested on March 26 because of concerns that affect the work.

A recent update from The Korean Herald said that the most feasible option given by LG’s leaders is to completely close factories abroad. In an official announcement on Monday (April 5), LG said it planned to convert external facilities for other purposes.

” Some of the facilities will be converted for other purposes. Something else, not suitable for the conversion, will be sold, ” said a source close to the matter.

Currently, LG’s factory in Brazil has halved production, workers here said. About 15,000 workers work here, 400 of whom assemble phones. The workers here worked with the factory management on April 6 to agree on the compensation rate and their remaining working days.

” Some local companies that cooperate with LG in making phones will also shut down because of job loss ,” said factory staff in Brazil.

Reference: Korea Herald, Business Korea