LG expands smart factory solutions business

LG Electronics (LG) has announced it is advancing its smart factory solutions business by integrating artificial intelligence (AI) and digital transformation and extending its customer reach.

Earlier this year, LG officially entered the smart factory solutions market. The company’s Production engineering Research Institute (PRI), which has been enhancing production and manufacturing competitiveness for LG Group affiliates, is now extending its expertise to external clients. Services offered include production consulting, development of equipment and operation systems and training for technology personnel.

Despite being in its inaugural year, LG said the business has already achieved significant milestones. PRI anticipates securing orders worth approximately KRW 200 billion (AU$215 million) from external clients for its smart factory solutions.

Major clients include secondary battery manufacturers, automotive parts manufacturers and logistics companies. LG plans to aggressively expand into industries with rapidly growing factory demand, such as semiconductors, pharmaceuticals, biotechnology and food and beverage. The goal is to develop the smart factory solutions business into a multi-trillion KRW enterprise by 2030, excluding revenue generated within the LG Group.

LG has accumulated vast amounts of manufacturing data and know-how through 66 years of factory design, construction and operation. In the past decade alone, the company has amassed 770 TB of manufacturing and production data. The company said its competitive edge also lies in its various core production technologies essential for smart factory configuration, with PRI filing over 1000 patents related to smart factory solutions. LG aims to set its smart factory solutions apart by integrating its extensive manufacturing data and expertise with AI and DX, leveraging world-class production technologies. These smart factory solutions encompass production system design, monitoring and operation through digital twin technology; big data and generative AI-based management of quality, industrial safety and equipment; and the provision of various industrial robots.

LG’s intelligent autonomous factories in Changwon, South Korea, and Tennessee, USA, have been recognised as Lighthouse Factories by the World Economic Forum. Following the implementation of smart factory solutions, productivity at the Changwon plant increased by 17%, energy efficiency improved by 30% and quality costs due to defects were reduced by 70%. Within the LG Group, production facilities at over 60 locations in 40 regions worldwide are applying solutions from PRI.

“We will offer optimal smart factory solutions at every stage — from planning and design to construction and operation — becoming the ideal partner that supports our clients throughout their entire production journey,” said Jeong Dae-hwa, head of LG PRI.

Image: LG Electronics.