In Tennessee, LG is making dryers as well as washers

Industry

Published: 15 Jan. 2023, 16:05 Updated: 15 Jan. 2023, 18:08

In Tennessee, LG is making dryers as well as washers

LG Electronics' Tennessee factory now makes dryers as well as washers. [LG ELECTRONICS]

LG Electronics is adding a new dryer manufacturing line to its factory in the U.S. state of Tennessee.

The Korean electronics giant invested $30 million and the line will produce 600,000 dryers per year.

“We recently set up a dryer line to actively respond to demand for premium products by increasing local production in the United States, the world’s largest home appliance market,” said Lyu Jae-cheol, president of LG’s home appliance and air solution division.

Built in 2018, the Tennessee plant was producing top-loading and front-loading washers. The annual production capacity of washers is 1.2 million machines.

LG believes the dryer line will help reduce logistics costs and delivery times for U.S. customers.

“We are planned to add a Wash Tower manufacturing line in the first half, aiming to make the Tennessee facility an outpost of laundry appliances and a key cornerstone of our business growth in the North American market,” added Lyu.

Wash Towers stack a front-loading washing machine and a dryer.

An automated guided vehicle that carries parts and components at the Tennessee plant [LG ELECTRONICS]

On Friday, the Tennessee plant was recognized by the World Economic Forum (WEF) as a so-called Lighthouse Factory, the first for a Korean factory overseas.

Companies that pioneer developments in core technologies of the fourth industrial revolution — internet of things (IoT), artificial intelligence (AI) and big data — are recognized as Lighthouse Factories by the WEF.

LG's is also the first home appliance factory in the United States recognized by the WEF.

The Tennessee factory’s automation rate currently stands at 63 percent, the highest for any home appliance plant in the world.

LG aims to increase that to 70 percent by the end of the year, Lyu added. A total of 166 automated guided vehicles are currently being used in the plant, which can carry parts of up to 600 kilograms (1,322 pounds).

LG’s Smart Park factory in Changwon, South Gyeongsang, was named a Lighthouse Factory by the WEF last March.

LG Electronics has been running its Tennessee plant completely on renewable energy since 2021. Its carbon emissions fell 63 percent in 2021 compared to 2020.

BY SARAH CHEA [chea.sarah@joongang.co.kr]