'Deungdae Factory' LS Electric and LG Electronics Form Alliance to Pioneer Global Smart Factory Market

Yangsa, World Economic Forum Selected as 'Lighthouse Factory'
Alliance Formed to Share Technology, Market, and Partner Companies

LS Electric, selected as a Lighthouse Factory by the World Economic Forum (WEF), announced on the 6th that it has formed a smart factory technology, market, and partner-sharing alliance with LG Electronics. A Lighthouse Factory refers to a factory that drives manufacturing innovation through technologies such as the Internet of Things (IoT), artificial intelligence (AI), and cloud computing, much like a lighthouse guiding ships through dark seas.

LS Electric and LG Electronics' Production Technology Institute signed a memorandum of understanding (MOU) the day before at the LS Yongsan Tower. They discussed plans to create synergies in the smart factory business and strategies for market development based on the alliance.

Jo Wook-dong, Executive Director of LS Electric (left), and Song Si-yong, Executive Director of LG Electronics, are taking a commemorative photo after signing a business agreement.
[Photo by LS Electric]

The two companies will promote collaboration through joint promotions in domestic and international smart factory markets, technical cooperation and continuous information exchange in response to smart factory business challenges, and proposals of their respective solutions and capabilities to customers at home and abroad.

They plan to secure expertise in various fields through an alliance involving LS Electric’s global partners such as Microsoft and PTC. Based on the manufacturing technology and experience of both companies, which have been selected as global Lighthouse Factories, the strategy is to provide competitive smart factory and energy-saving solutions. Previously, LS Electric’s Cheongju plant and LG Electronics’ Changwon and Tennessee plants were selected as global smart factory Lighthouse Factories by the World Economic Forum (WEF).

Overview of Smart Factory Business Collaboration between LS Electric and LG Electronics.
[Photo by LS Electric]

LS Electric offers power solutions covering power generation, transmission, and distribution, industrial automation solutions including inverters and PLCs essential for industrial equipment, as well as smart grids, microgrids, energy storage systems (ESS), and solar power, providing factory automation, smart factory transformation, and energy-saving solutions. Since 2019, LS Electric has maintained a close collaborative relationship with LG Electronics’ Production Technology Institute, working on productivity innovation activities for low-voltage equipment lines, advanced quality enhancement of transformer exteriors, and the establishment of advanced switchgear panel factories.

LG Electronics’ Production Technology Institute is an expert organization equipped with production system consulting and automation equipment, supporting manufacturing competitiveness for LG Group affiliates for 37 years.

Jo Wook-dong, Executive Director of LS Electric, said, "Through cooperation with LG Electronics’ Production Technology Institute, we will spread the digital transformation (DX) capabilities of both companies, led by smart factories, not only domestically but also globally, starting with the Hannover Messe exhibition this year."

Song Si-yong, Executive Director of LG Electronics, said, "We will complement each other’s capabilities and maximize strengths to establish a 'Total Factory Offering' system across the entire factory area, rather than providing one-time solution support."