Seoul: LG Electronics Inc., a major home appliance maker based in South Korea, announced the commencement of operations at a new home appliance plant in Brazil. This strategic move aims to strengthen the company's presence in the South American market.

According to Yonhap News Agency, Brazil, known as the world's 11th-largest economy, has been a significant market for LG Electronics. The rise in purchasing power among lower-income households due to government-support programs has made the country an attractive destination for expansion.

The new manufacturing facility, located in Parana in southern Brazil, marks LG Electronics' second plant in the region and commenced operations last week. The plant boasts an annual production capacity of 600,000 refrigerators. When combined with its existing facility in Amazonas, LG's total local production capacity for appliances is expected to exceed 7 million units annually.

LG Electronics stated that the new plant will focus on producing premium and localized appliances. This approach is designed to enhance cost competitiveness and meet the increasing local demand. Additionally, the facility is set to function as an export hub for neighboring countries, further solidifying LG's footprint in the region.