LG is reportedly moving production to one of its existing factories in Haiphong, Vietnam.
LG is making some literal moves. The South Korean electronics and phone company is relocating their mobile production facility in South Korea for the year, and focusing instead on one of its plants in Haiphong, Vietnam, according to Reuters and first reported by South Korean news outlet Yonhap News Agency.
Though LG overall is profiting, its mobile division posted a $172 million loss in the second quarter of 2018. And while globally, things are especially difficult for LG. Its , and it still must compete against bigger companies like Samsung, Huawei and Apple, too.
With the relocation, the company does not plan to downsize its phone business, however. The move is to make LG “much more competitive for the global market,” said LG senior director of global corporate communications Ken Hong. “Korea will continue to be the hub for smartphone R&D, design, quality assurance, etc.”
As reported by Reuters, the factory in South Korea mostly makes premium phone models, which would include devices like the smartphones. In addition to South Korea and Vietnam, the company also has factories in China, Brazil and India.or the upcoming , and manufactures about 10% to 20% of LG’s total
Originally published April 24, 2:35 p.m. PT.
Update, April 25: Adds comment from LG.