LG Expands Factory in Manaus After Leaving The Mobile Phone Market

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LG is leaving the smartphone market and ended part of its activities in Taubaté, but is still investing in factories in Brazil. This Monday (31), the company announced an expansion in its facilities in Manaus to support the production of more devices in Amazonas.

After entering into an agreement with employees, the company will close the Taubaté factory and migrate the assembly of monitors and notebooks to Manaus. LG got government approval to expand its facilities in Amazonas by 12,000 square meters.

According to figures released by the company, the work will cost R $ 325 million and promises to generate around 150 job vacancies. With this, LG will have about 2,200 employees in Amazonas, being the fourth largest company in the generation of jobs in the region.

Commitment to Brazil

According to company estimates, operations of the new project in Amazonas should start in July this year. According to Seo Young-moo, senior vice president of LG Brazil, the company’s move aims to show the brand’s commitment to the Brazilian market, after the closure of the cell phone factory in our country.

With the exit of LG from the smartphone market, the Taubaté factory was closed and generated around 700 layoffs. The company has made an agreement with the Metalworkers Union in the region and will pay around R $ 37.5 million to employees affected by the change.

Despite the transition of assembly lines to Manaus, LG also points out that it will maintain activities in Taubaté. The city of São Paulo will also have a call center for customer service, according to a company statement.