LG Electronics Reorganizes Manufacturing Facilities, Increases Investment in Mexico

LG Electronics Reorganizes Manufacturing Facilities, Increases Investment in
Mexico

MEXICO CITY, July 6 /PRNewswire/ -- LG Electronics is planning to reorganize
manufacturing plants and expand investments in Mexico to maximize efficiency
and competitiveness.

The company will invest an additional US$100 million over the next three
years, increasing total production capacity to US$4 billion. This is designed
to generate synergies among plants in Mexico and improve cash flow during the
current global recession, while further improving capabilities to serve
customers in North, Central and South America.

LG Electronics currently operates three manufacturing facilities in Mexico:
Reynosa and Mexicali producing TVs and Monterrey making refrigerators and
electric ovens. The reorganization program, which is now under way, includes:

-- Consolidation of LCD TV manufacturing plants -- Two separate plants in
Reynosa and Mexicali will be integrated into one consolidated plant in
Reynosa to produce mid-large size and premium TVs. Consolidation is
expected to be completed by September 2009.
-- Outsourcing of small- and medium-size LCD TVs -- LG Electronics plans
to
expand its collaboration with an external manufacturing partner in
Mexico.
-- Withdrawal from mobile phone manufacturing in Mexicali -- With the
closure of the Mexicali plant in June, handsets for North America will
be produced in Korea and China.
-- Expansion of Monterrey plant capabilities -- The refrigerator and
electric oven manufacturing Monterrey plant will start producing gas
ovens by the end of 2009.

-- Localization of components -- LG Electronics will source more
components
in Mexico to gain cost competitiveness.

Planned increases in investment and employment include:

-- Increased investment -- LG Electronics plans to invest more than
US$100
million in Mexico over the next three years.
-- Expanded production capacity -- LG will expand production capacity to
US$4 billion by 2012, up from US$2.6 billion in 2008.
-- Additional employment -- Adding new production lines in Reynosa will
generate about 1,200 new jobs and the Monterrey plant is planning to
hire 1,300 additional workers. Localizing component production will
help
boost recruitment opportunities in Mexico.

-- Retirement benefits and outplacement support -- All 500 Mexicali
employees will be eligible for positions in Reynosa or Monterrey.
Retiring employees will receive pensions or outplacement support
services consistent with local labor laws.

About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology
innovator in consumer electronics, mobile communications and home appliances,
employing more than 84,000 people working in 115 operations including 84
subsidiaries around the world. With 2008 global sales of $44.7 billion, LG
comprises of five business units - Home Entertainment, Mobile Communications,
Home Appliance, Air Conditioning and Business Solutions. LG is one of the
world's leading producers of flat panel TVs, audio and video products, mobile
handsets, air conditioners and washing machines. LG has signed a long-term
agreement to become both A Global Partner of Formula 1(TM) and A Technology
Partner of Formula 1(TM). As part of this top-level association, LG acquires
exclusive designations and marketing rights as the official consumer
electronics, mobile phone and data processor of this global sporting event.
For more information, please visit www.lge.com.

SOURCE LG Electronics, Inc.

John I. Taylor of LG Electronics North America, +1-847-941-8181,
jtaylor@lge.com; or Daewon Han of LG Electronics Mexico, +1-760-525-9809,
seed@lge.com; or Nathan Friedman of LG-One, +1-312-397-6009,
nathan.friedman@lg-one.com