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LG Electronics stops pc manufacturing

LG Electronics has stopped the direct production of pcs in China to concentrate on its design related capabilities – as well as saving costs.

The company, South Korea's second largest electronics manufacturer, announced that pc production stopped at the plant in China from September and the line has been switched to manufacture satellite navigation systems. Since 2003, LG produced some of its laptop models at the plant, while most of its desktop pcs and notebooks were foundry or contract based manufactured. Under the new outsourcing strategy, a number of Taiwanese laptop makers will manufacture the goods for the South Korean company with technology and design provided by LG itself. LG says that the new strategy will strengthen its design and research programmes and allow for more developments in the consumer sector.