LG Electronics' Tennessee Plant in the US Selected as WEF 'Lighthouse Factory'

First Case Among US Home Appliance Factories
Automation Introduced Using Advanced Technologies Like AI

[Asia Economy Reporter Kim Pyeonghwa] LG Electronics announced on the 15th that its Tennessee plant was selected as a Lighthouse Factory, the first among its home appliance factories in the United States. This is also the first case among factories established overseas by Korean companies.

A Lighthouse Factory refers to a factory that leads the future of global manufacturing by adopting advanced technologies, just as a lighthouse shines light in the night sky to guide the way. The World Economic Forum (WEF) has been selecting Lighthouse Factories twice a year since 2018 by examining factories worldwide.

LG Electronics Tennessee Factory Overview /
[Photo by LG Electronics]

LG Electronics introduced digital technologies such as Artificial Intelligence (AI), Big Data, and the Internet of Things (IoT) at the Tennessee plant and automated processes with robots. In addition, it consolidated over 60 years of manufacturing know-how to present the plant as a leader in manufacturing innovation.

With this selection, LG Electronics now owns its second Lighthouse Factory following the Changwon LG Smart Park, which was selected in the first half of last year. LG Electronics is the only Korean company to have Lighthouse Factories both domestically and overseas.

Ryu Jae-cheol, President of LG Electronics H&A Business Division, said, “Being selected as a Lighthouse Factory for the Tennessee plant following Changwon LG Smart Park recognizes our overwhelming manufacturing technology and competitive advantage in the home appliance sector. We will continue to strive to provide differentiated customer experiences through customized manufacturing innovation.”

'Complete Integrated Production System' Tennessee Plant

The Tennessee plant, completed at the end of 2018, operates three production lines manufacturing drum washing machines, agitator washing machines, and dryers. It has an annual production capacity of 1.2 million washing machines and 600,000 dryers, actively responding to changes in demand in the North American market through local production.

Notably, it features a ‘complete integrated production system’ that performs everything from parts manufacturing to product completion and packaging on a single line. This reduces issues such as parts supply delays and shortens the time to deliver products to customers. The factory automation rate is 63%, with a goal to reach 70% by the end of the year.

A robot is stacking dryers completed at LG Electronics' Tennessee factory to move them to the storage area. / Photo by LG Electronics

The Tennessee plant also applied an intelligent injection system. Through this, parts productivity increased by about 20% compared to before, and the defect rate improved by approximately 60%. Data-driven AI technology was also applied to predict product performance. The introduction of Automated Guided Vehicles (AGV) completed an unmanned logistics system.

LG Electronics plans to continuously advance logistics by establishing a dedicated 5th Generation Mobile Communication (5G) network at the Tennessee plant in the second half of the year and introducing next-generation logistics robots based on autonomous driving.

Meanwhile, the Tennessee plant is also leading efforts in Environmental, Social, and Governance (ESG) management to create a sustainable future. Since 2021, the Tennessee plant has switched all energy used to renewable energy, reducing its net carbon emissions by 63% compared to the previous year. It introduced the building energy management solution Beacon (BECON) to optimize utility facility operations and save energy.