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Company Expands Smart Factory Business
Based on AI Technology and Automation Solutions

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SEOUL, Mar. 13, 2024 — LG Electronics (LG) is expanding its B2B business area and making significant strides into the global smart factory market by capitalizing on its expertise in constructing and operating intelligent autonomous factories.

Earlier this year, LG established the Smart Factory Business Division within its Production engineering Research Institute (PRI) and initiated the commercialization of its intangible assets, including smart factory construction technology and operational solutions. These innovations will be highlighted at MODEX 2024, the premier supply chain experience trade show, held in Atlanta, Georgia, USA.

LG’s smart factory business not only delivers production automation solutions but also incorporates AI-driven production planning, operations and the Digital Twin solution. The company aims to enhance customers’ manufacturing competitiveness by offering optimal solutions across all stages, from factory planning and design to construction and operation. Additionally, continuous improvement consulting services for factory upgrades will be available.

Aligned with LG’s vision of achieving a revenue of KRW 100 trillion by 2030, with the B2B sector targeting revenue exceeding KRW 40 trillion, the smart factory business serves as a cornerstone for LG’s B2B expansion. This endeavor is part of LG’s strategic focus on three key areas for future growth: accelerating non-hardware business models, expanding B2B businesses and developing new business domains.

Experienced in various aspects of the smart factory business, LG boasts extensive manufacturing expertise across diverse sectors such as home appliances, air solutions, TVs, vehicle components and robotics. What’s more, the company provides cutting-edge equipment and communication technologies, including big data-enabled integrated monitoring systems and predictive quality evaluation systems.

In addition to its manufacturing prowess, LG has secured essential digital technologies for building automated processes, including AI, big data and the Internet of Things (IoT). The company has also developed an intelligent production system where deep learning-enabled robots execute tasks guided by the company’s Digital Twin solution. This solution simulates actual machinery, equipment and logistics systems in a virtual environment, facilitating smooth integration and optimization of manufacturing processes.

These accomplishments have earned LG recognition for possessing world-class smart factory technology, encompassing hardware, software and automation solutions. Notably, the LG Smart Park in Changwon and the Tennessee factory in the USA were selected as Lighthouse Factories by the World Economic Forum.

With these capabilities, LG strengthens collaboration with various partners to expand the smart factory ecosystem. Following the signing of an MOU with LS ELECTRIC for the “Establishment of Smart Factory Business Cooperation System and Mutual Benefit Enhancement,” LG is forming unions with numerous global partners to advance smart factory technology through cloud and data analysis.

“In light of LG’s robust portfolio of smart factory solutions, we are committed to partnering with customers throughout their manufacturing journey by delivering optimal solutions across all stages, from planning and design to construction and operation,” stated Song Shi-yong, head of LG Electronics’ Smart Factory Business Division. He further elaborated on plans to introduce a Total Factory Offering System, which will provide a comprehensive solution in collaboration with LG and its global partners.

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