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South Korean Multinational Accelerates Construction of Its Second Factory in Brazil, Focusing on White Goods and Promising to Transform the Economy of Fazenda Rio Grande, a Paranaese City That Registers Accelerated Population and Industrial Growth.
LG Electronics is building a new factory in Fazenda Rio Grande, in the Metropolitan Region of Curitiba, with an investment exceeding R$ 1.5 billion and a plot of 770,000 m².
The construction began in August 2024, has already surpassed 40% completion, and the schedule anticipates completion in January 2026, with inauguration in February 2026 and production start in the first half of the same year.
Production and Distribution of the New Factory
The plant will initially operate the line of refrigerators. In subsequent phases, it will expand the portfolio to include washing machines and dryers.
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The goal is to supply the Brazilian market and countries in South America, reducing reliance on imports and shortening logistical timelines.
According to LG’s Kitchen Solutions division, the factory will play a strategic role in the company’s global production network of refrigerators.
Construction Progress and Schedule
The construction site was opened in August 2024, and according to updates released by the state government and the company, construction reached about 40% by May/June 2025.
The civil works are proceeding at an accelerated pace to allow line testing before the inauguration in February 2026.
There has been large-scale earthmoving and the installation of warehouse foundations, a crucial step to receive machinery and utilities.
Reasons for Choosing Paraná
The decision to establish LG’s second Brazilian factory in Paraná resulted from negotiations initiated during an official state government mission to South Korea in 2023, formalized in February 2024, when both parties signed a memorandum of understanding.
The company has been operating in the country for nearly three decades, with a facility in Manaus, and is now expanding its industrial presence in the South to diversify production and be closer to the main consumer markets.
Incentives and Public Investments
The project is part of Paraná Competitivo, a program that offers fiscal incentives as provided by law and is operated by the Department of Finance and Invest Paraná.
Meanwhile, the Fazenda Rio Grande city hall is investing around R$ 40 million in expropriations, reinforcing the electrical network, and constructing access roads to the plant.
The expropriated area and surrounding grounds underwent requalification, with plans for new traffic devices to support truck movements and the flow of workers.
Economic Impact and Supply Chain
With operations in Fazenda Rio Grande, LG aims to nationalize components and reduce logistics costs, enhancing the competitiveness of the white goods produced in the country.
The company indicates that the Paraná plant will serve as a regional hub for refrigerators.
During a visit to the site, the global leadership of the kitchen division stated that the factory would play a “vital role” in the brand’s global refrigerator production, reinforcing the ambition to strengthen its presence in Latin America.
Direct and Indirect Jobs
The establishment of a manufacturing complex of this scale has a multiplier effect on direct and indirect jobs, outsourced services, and suppliers of packaging, plastics, metals, and logistics.
In addition to its own workforce, the municipality is expected to attract new CNPJs linked to the value chain, densifying the local industrial park.
State agencies point out that Fazenda Rio Grande ranked among the top 15 municipalities that generated the most formal job openings in Paraná in 2025, a result consistent with the advancement of construction and the arrival of private investments.
Population Growth in Fazenda Rio Grande
The 2022 Census by IBGE recorded 148,873 residents in Fazenda Rio Grande.
The 2025 estimates indicate 165,943 residents, confirming the population acceleration compared to 2010, when the municipality had just over 80,000 inhabitants.
This demographic leap is due to the combination of more affordable housing than in the capital, the expansion of industrial lots, and an increasing supply of formal jobs in the region.
Without presenting divergent absolute numbers, the state also highlights that Fazenda Rio Grande is among the cities that gained the most residents in the past year.
LG Expansion in Brazil
The Paraná unit will be the second factory for LG in the country, complementing the structure of the Free Trade Zone of Manaus, where the multinational has operated for over 27 years.
The Amazonas plant remains focused on already established categories of the brand, while the new operation targets white goods with the potential to replace imports and increase the market share of appliances.
Next Steps Until Production Start
The industrial schedule plans, after the civil works completion, the installation of lines, utilities, and automation systems, in addition to commissioning and certification processes.
The commercial production of refrigerators is scheduled for the first half of 2026.
Subsequently, LG is expected to scale capacity and add new lines of washers and dryers, as demand and local supply maturity of components allow.
Market Impact and Benefits for Consumers
Manufacturing in Paraná is expected to increase the supply of models, reduce delivery times, and potentially bring new technologies to the Brazilian market faster.
For the industry, the presence of a large multinational often attracts suppliers and induces technical standards that reflect in quality and productivity.
Meanwhile, state and local authorities project revenue gains and urban effects that require planning in mobility, housing, and public services.
If the factory meets the schedule and scales quickly, what will be the most visible impact for residents: new local jobs, improved infrastructure, or the arrival of more companies to the city?
Querem é benefícios fiscais. Em Taubaté sugaram tudo o que foi possível, e depois abandonaram a planta , deixando mais de 800 funcionarios sem os direitos trabalhistas. Pequena cidade, ABRE O OLHO
será a terceira fábrica, esqueceu da fábrica ociosa de Taubaté SP , que produzia celulares e monitores! vai entender a cabeça dos xing ling !
Na terraplanagem, já causaram danos, transformando os imóveis vizinhos em pântano. Vergonha para a LG.
Achei ótimo a vinda dessa fábrica aqui em FRG PR. Gerando empregos direto e indiretamente para crescimento da cidade e das população como um todo.