LG is expanding beyond consumer goods and turning to smart factories for future growth as it transforms into a business-to-business (B2B) giant.
according to Korea Economic Newspaper, LG recently launched a smart factory business division under its R&D center, signaling a major shift from its traditional home appliance brand.
Leading Korean companies have identified B2B services, especially for smart factories, as a new growth area. The aim is to utilize domestic and overseas factories and operational know-how. Smart factories fully automate production processes from assembly to packaging, while leveraging big data and deep learning technology to improve work and power usage efficiency.
turnkey service
The company's smart factory division will consist of several dozen employees and will spearhead the development of automation technology. This includes mobile robot systems to manage the sales process, from automated factory design to construction and management know-how.
Market research firm Statista predicts that the global smart factory market will grow from $153.7 billion in 2019 to $244.8 billion this year. LG intends to capitalize on this market growth by offering turnkey services for smart factories that cover the entire automation process from planning and design. , build and operate them.
Currently, most smart factory projects focus on consulting and upgrading part of the production line. However, LG's approach is holistic, going beyond mere construction to provide ongoing consultation at the factory upgrade level.
Smart factories collect and process data in real time through the Internet of Things (IoT), analyze the information and control each process. Demand for smart factories is increasing as companies around the world aim to improve production efficiency through digital transformation.
Korea Economic Newspaper It has been reported that LG has already converted some of its six home appliance production lines into smart facilities at its main production base in Changwon, South Gyeongsang Province, and a home appliance factory in Tennessee, USA.
