LG OPENS NEW SCROLL COMPRESSOR PRODUCTION LINE IN MEXICO

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Jan 19, 2024, 02:04 ET

Increased Manufacturing Capacity to Strengthen Company's Competitiveness, Help It Meet Growing Demand from North American Businesses

SEOUL, South Korea, Jan. 19, 2024 /PRNewswire/ -- LG Electronics (LG) announces the opening of a new scroll compressor production line at its factory in Monterrey, Mexico. The new line bolsters LG's scroll compressor manufacturing infrastructure, enabling the company to produce more of its acclaimed, eco-conscious solutions while creating a shorter supply chain for servicing customers across North America.

LG Electronics' Gen 3 Scroll Compressors produced in LG Electronics factory in Monterrey, Mexico

LG Electronics opens new scroll compressor production line in Mexico

LG's decision to establish a production line in Mexico comes at a time when many U.S. HVAC manufacturers are facing challenges due to escalating logistical disruptions. The strategic move places an LG scroll compressor production base in close proximity to key North American markets; setting up a production/logistics system that will help the company better respond to regional demand and lessen the impact on customers of factors such as logistic issues.

LG's scroll compressors play a major role in the company's heating, ventilation and air-conditioning (HVAC) components business. At AHR Expo 2023 in Atlanta, Georgia, LG showcased its energy-efficient Gen 3 Scroll Compressors for residential air conditioners and heat pumps, as well as large-capacity scroll compressors for commercial system air conditioning.

Designed with the future in mind, Gen 3 Scroll Compressors are symbolic of LG's continuing leadership in HVAC innovation. In anticipation of refrigerant regulations taking effect in 2025,^[1] and in line with the company's commitment to the environment and sustainability, the compressors utilize low Global Warming Potential (GWP) refrigerants. With GWPs less than 700 – far lower than the 2,088 GWP of R410A – these refrigerants easily meet the newest eco-focused standards for refrigerants. The structure of the Gen 3 Scroll Compressors also helps to ensure compliance with the latest efficiency standards^[2] by reducing energy waste and heat loss.

"The new, state-of-the-art production line in Mexico will enable us to produce more of our eco-conscious scroll compressors and fortify our ability to service the North American market," said Kim Yang-sun, head of the Component Solution Business Unit at LG Electronics Home Appliance & Air Solution Company. "LG will continue to provide advanced technologies and components to meet the diverse needs of its global customers."

[1] The state of California has passed legislation that will ban the use of refrigerants with a GWP over 750 from the year 2025.
[2] LG's compressors meet the requirements of the U.S.'s new HVAC efficiency standard, which went into effect on January 1, 2023.

About LG Electronics Home Appliance & Air Solution Company

The LG Home Appliance & Air Solution Company is a global leader in home appliances, smart home solutions, air solutions as well as visionary products featuring LG ThinQ AI. The company is creating various solutions with its industry leading core technologies and is committed to making life better and healthier for consumers by developing thoughtfully designed kitchen appliances, living appliances, HVAC and air purification solutions. Together, these products deliver enhanced convenience, superb performance, efficient operation and compelling health benefits. For more news on LG, visit www.LGnewsroom.com.

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