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LG to increase manufacturing output this year

LG to increase manufacturing output this year

15th January 2015

By: Creamer Media Reporter

  

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From Creamer Media in Johannesburg, this is the Real Economy Report.
Electronics company LG South Africa expects to increase its manufacturing output to 320 000 units this year at its only manufacturing facility in South Africa. Sashnee Moodley has the story.

Sashnee Moodley:
LG recently invited the media on a factory tour of its 12 000 m2 manufacturing facility where LG production manager Noelin Pillay revealed that the company was planning to increase its production output to 320 000 units this year.

The facility, which opened in 2011, produced 280 000 units last year and the electronics producer now hopes to increase production to stay ahead of the competition in the electronics industry.

LG production manager Neolin Pillay:
What we are planning to do is increase our head count. We are looking at adding another ten people to the line dependant on volume. So we will obviously base that on model and make a calculated decision as to how we need to add operators to the line and in which sections to add them. We also try to do innovative things like screw machines, automatic screw machines so that will help us speed up the line and increase our input by at least 10%.

I think we are quite innovative, if you look at the market and how we are producing, from a manufacturing point of view. We are innovative as other competitors use jig lines and we do a flow line. We do 12 seconds per unit coming off that line so we are quite competitive. Our cost competitive is quite low and we try to stay ahead of the competition. Also by training our operators, we emphasise a lot of focus on our operators. We emphasise a lot of focus on our operators and in making sure they are skilled, right skills in the right positions. We send quite a few operators and engineers to Korea on a yearly basis, upskilling them and giving them a competitive edge so that would be one of they ways to stay ahead of our competition.

Sashnee Moodley:
When asked about the state of the local television market, Pillay said that from an LG perspective it was growing and added that there were significant opportunities in the South African market.

LG production manager Neolin Pillay:
What we are trying to do is obviously tap into the higher end market. We see a lot of Chinese brands and other competitors coming at the low end but in terms of the high end products that’s where we want to focus. We believe our product is a high-end product. Our quality facilities are quite high and quite stringent in terms of our testing processes so from that aspect I think the market is definitely growing. There is huge opportunity in the South African market. Consumers are definitely looking at high end products; they’re looking at size. We of course created the 105-inch UHD so we are quite competitive in that aspect.

 

Shannon de Ryhove:
That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.

 

Edited by Shannon de Ryhove
Contributing Editor

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