After announcing the end of the production of cell phones, LG confirmed last night (5) that it will end activities aimed at the smartphone sector at its factory located in the city of Taubaté, in São Paulo. There was speculation about the sale of the plant, but the Korean seems not to have received attractive proposals.
In a statement, the company states that it had been striving to ensure continuity of services. “With the increasing global competitiveness, as well as due to the accumulated losses in the smartphone segment for 23 consecutive quarters and accumulated operational losses, the company decided to end its cellular activities globally, which will result in the end of this production at the unit in Taubaté / SP “.
The factory has about 1,400 employees and it is estimated that 400 employees working in the smartphone sector will be shut down by July. The LG unit in Manaus does not have activities related to the manufacture of cell phones, so it will not be affected.
Other suppliers of the brand, such as Sun Tech, Blue Tech and 3C, will also be impacted by the decision. That’s because 430 workers specializing in the manufacture of LG phones will be dismissed from the South Korean group.
According to a statement, the company is discussing solutions with the union of the category to reduce the impact of the decision. LG says measures for relocations, transfers and terminations are still being analyzed.
Meanwhile, employees at the Taubaté unit organized a series of demonstrations in front of the company. The president of the Metalworkers Union of São José dos Campos and Region, Weller Gonçalves, says that the group will “demand, in the fight and in the courts, that all rights are guaranteed”.