LG Is Considering Building New Factory In Minas Gerais With Expectation Of Creating Thousands Of New Jobs

LG Is Planning to Build a New White Goods Factory in the State of Minas Gerais. The Expectation Is That Thousands of Jobs Will Be Generated in the Region.

LG, a technology giant, is studying the construction of a new white goods factory in the South of Minas Gerais, which promises to generate thousands of jobs. Poços de Caldas, Extrema, and Pouso Alegre are in the running, alongside other cities in Santa Catarina and Paraná. However, Diário do Comércio, one of the main economic newspapers in the state, reported that the state is in the lead after the Korean company visited the region, and that Poços de Caldas could be LG’s choice for the new factory.

Work Done by the Government of Minas Gerais Pleases Multinational LG

According to a source close to the negotiations, who requested anonymity, since Midea chose Pouso Alegre and Panasonic is located in Extrema, it is almost certain that Poços will get the new factory, which will create new jobs.

The anonymous informant also highlights that the work done by the government of Minas Gerais and the city managers has pleased the company. An interlocutor from the city also states, on condition of anonymity, that negotiations between the multinational and the Poços de Caldas City Hall are advancing rapidly. When contacted, the city administration neither confirmed nor denied the talks, and LG has not responded to the reporter’s persistent inquiries.

In April, the state government of Santa Catarina announced a great opportunity for LG to establish itself in the state during an event to present the 100-day management balance.

At that time, the state administration stated that the region’s development, logistic advantages, proximity to other large companies, established supply chain, and the state government’s fiscal policy were in favor of Santa Catarina.

Official Announcement of a New LG Factory May Come Soon?

Despite everything, almost three months later, no official announcement has been made by the company, and the South of Minas Gerais presents similar attributes and strengths. The resemblance is such that the region already has two white goods manufacturers, namely Panasonic, which has a refrigerator unit in Extrema, and Midea, a multinational from China, which began installation work in Pouso Alegre in April.

Thus, the CEO of Invest Minas, João Paulo Braga, highlighted in February, at an event celebrating investment attraction for Minas Gerais, that a development dynamic of the white goods sector chain is being developed in the southern part of the state.

Midea is one of the largest producers of household appliances and climate control equipment in the world and is investing R$ 600 million in the Minas unit. The expectation is that the new factory will start operations in July 2024 and generate 700 jobs.

This initiative is part of the company’s global expansion process, which foresees significant investments in strategic countries such as Brazil, taking into account one of the largest white goods markets in the world and the largest in Latin America. Starting in 2024, the Midea Industry of Brazil, as the factory in Minas Gerais will be called, will have the capacity to produce 1.3 million products annually, starting with frost-free refrigerators.

Get to Know LG

Founded in 1958, LG leads over 142 local subsidiaries worldwide, with more than 70,000 executives and employees. The company has been in Brazil since 1996 and sells over 350 items in the country, including TVs, video and audio equipment, computer equipment, white goods, air conditioners, and corporate solutions.

Currently, the company manufactures products at its plants in Manaus, which account for most of the products sold in Brazil. The unit is considered LG’s second-largest operation, only behind the United States.