The LG Electronics refrigerator production line in Changwon, South Gyeongsang Province. After implementing smart factory solutions, the Changwon factory saw a 17% improvement in productivity, a 30% increase in energy efficiency, and a 70% reduction in quality costs due to defects. (Image courtesy of LG Electronics)
SEOUL, Jul. 19 (Korea Bizwire) – LG Electronics is ramping up its smart factory solutions business, leveraging 66 years of manufacturing and production data combined with artificial intelligence (AI) and digital transformation (DX) technologies.
The company aims to aggressively enter industrial sectors with anticipated growth in factory demand, with the goal of achieving revenue of 1 trillion won by 2030.
According to LG Electronics, the smart factory solution business is an initiative of the LG Production Engineering Research Institute (LG PRI), which has been leading the enhancement of production and manufacturing competitiveness for LG Group affiliates.
The institute is now offering its smart factory construction and operation technology to external companies.
LG Electronics boasts strengths in various areas of smart factory technology, including comprehensive manufacturing expertise, superior production methods and equipment, and advanced communication technologies.
Over the past decade, the company has accumulated 770 terabytes of manufacturing and production data. LG PRI has filed over 1,000 patents related to smart factory solutions.
By combining these strengths with AI and DX, LG Electronics provides a step-by-step roadmap for the entire manufacturing process from automation, informatization, and intelligence perspectives.
The production system design and operation solution is based on real-time simulations using digital twins. This allows for the creation of virtual factories to design systems with optimal efficiency.
During operation, the solution analyzes operational data to detect production line bottlenecks, defects, or malfunctions in advance, contributing to improved productivity.
Factory automation is supported by Autonomous Mobile Robots (AMRs) and Mobile Manipulators (MMs), which combine AMRs with robotic arms. These robots supply parts and materials, perform assembly tasks, and conduct defect inspections.
The solution also incorporates generative AI for detecting anomalies within factories and uses big data to determine causes and remedial actions, enhancing safety management.
Currently, the main customers for smart factory solutions are secondary battery manufacturers, automotive parts manufacturers, and logistics companies. LG Electronics plans to expand its customer base to include semiconductor, pharmaceutical, biotechnology, and food and beverage industries.
The LG Electronics refrigerator production line in Changwon, South Gyeongsang Province. After implementing smart factory solutions, the Changwon factory saw a 17% improvement in productivity, a 30% increase in energy efficiency, and a 70% reduction in quality costs due to defects. (Image courtesy of LG Electronics)
Despite being in its first year, the venture is already showing concrete results. LG PRI’s order volume for solutions provided to external companies, excluding LG Group affiliates, is expected to reach about 200 billion won this year.
Smart factory solutions focus on reducing even the slightest delays and minute errors, as efficiency in production and manufacturing directly impacts business profitability.
An LG Electronics official explained, “At the LG Electronics refrigerator production line in Changwon, South Gyeongsang Province, a refrigerator is produced every 13 seconds. A 10-minute delay in the production line results in a production loss of 50 refrigerators. Assuming a price of 2 million won per refrigerator, a 10-minute delay translates to a loss of 100 million won.”
After implementing smart factory solutions, the Changwon factory saw a 17% improvement in productivity, a 30% increase in energy efficiency, and a 70% reduction in quality costs due to defects.
The smart factory solution, based on expertise validated both internally and externally, is significant in terms of commercializing intangible assets.
LG Electronics is accelerating the transformation of its existing product-centric business portfolio into a future-oriented business structure by combining tangible products with intangible assets such as software and solutions.
As the business targets external companies as customers, it is expected to contribute to the growth of business-to-business (B2B) operations.
LG Electronics CEO Cho Joo-wan emphasized strengthening B2B capabilities as one of three growth engines in the company’s “2030 Future Vision” announced last year.
Kevin Lee (kevinlee@koreabizwire.com)
