November 25, 2024

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LG Innotek's vehicle motor plant in Pyeongtaek, Gyeonggi Province (LG Innotek)

LG Innotek, the electronic component manufacturing unit of LG Group, will suspend the production of its vehicle motor plant in Pyeongtaek, Gyeonggi Province, later this year to relocate facilities to other sites at home and abroad, according to industry sources Friday.

With the planned relocation, the company is expected to streamline operations and improve profitability.

The facilities are likely to be transferred to the company’s other motor plants in Gwangju, China, Mexico and Poland.

The Pyeongtaek plant was completed in 2018. But its operating rate has continued to fall due to the company’s sluggish sales of automotive parts.

LG Innotek said the relocation is a strategic decision to strengthen business competitiveness. The company added that all the employees at the plant will be retained, with support measures being offered based on individual circumstances and needs.

By Jie Ye-eun (yeeun@heraldcorp.com)