LG, the largest electronics company in the world, ends production and closes its factory in SP, leaving about 1000 workers without jobs
After Ford, another large multinational is closing its doors in SP. After announcing that it has abandoned the production of cell phones, in all countries of the world, claiming accumulated losses of around US$ 4,1 billion, the Korean multinational giant LG, will also end its production of notebooks and monitors at its factory in Taubaté, leaving almost a thousand workers without jobs in SP.
Read also
- The multinational Ford removes the EcoSport and Ka SUV from the line and Ranger becomes the cheapest Ford in Brazil
- After leaving Ford, Renault and Nissan are moving to stop vehicle manufacturing and close their factories in Brazil
- After Ford, Chevrolet, Honda and Audi withdraw or reduce vehicle production in the country, the multinational Bosch brings US manufacturing to SP
- Ford factory in ABC Paulista is demolished and new logistics center to be built will generate more than 4 jobs
- After Ford leaves Brazil and stops production of cars in Bahia, Camaçari is experiencing the 'dismantling' of factories and 7,5 people are expected to lose their jobs
The announcement took place last Tuesday (06/04). LG said it will transfer its production lines to Manaus. Only the Korean company's call center operation would remain in the city of São Paulo. With that, the union of metallurgists estimates the dismissal of 700 of the current 1.000 employees of LG in the region.
"The company will transfer the production of notebooks, monitors and all in one to its Manaus unit, so that we will strengthen our commercial competitiveness in TV, PCs and monitors", said LG in a note. The company also said it was negotiating with the Taubaté union to “implement additional compensation to the rights already in force” for those dismissed.
The transfer takes place due to tax exemptions that LG has in the Manaus Free Trade Zone
To the Taubaté trade union, the company stated that the decision was taken due to having tax benefits in Amazonas and not having the same exemptions in São Paulo. The entity will have new meetings with LG until Friday, and seeks to reverse the decision.
“The decision to transfer notebooks and monitors to Amazonas was taken, according to the company, after the government of São Paulo decided not to renew the ICMS exemption for the sector. The company says it talked to the (state) government, but there was no way. Approximately 700 would be dismissed”, says the president of the Taubaté metalworkers' union, Cláudio Batista.
There is an intention to readjust the factory in the city for the production of white goods – but that depends on the end of the pandemic and on obtaining tax incentives from the São Paulo government, LG representatives told workers’ union interlocutors.
LG is negotiating with the union a contractual rescission and the transfer of some workers from São Paulo to Amazonas. New meetings take place tomorrow, April 9th.
The closing of more than a thousand jobs, with the deactivation of the LG factory, adds to the stoppage in the automakers. A survey carried out by the National Association of Motor Vehicle Manufacturers (Anfavea) reveals that 29 of the 58 vehicle factories installed in the country are at a standstill.
