“Life’s good.” That is the highly inspirational slogan of LG Electronics known around the world. It can also be said that Thailand has been very good for one of the conglomerate’s overseas production subsidiaries.

LG Electronics (Thailand) Co., Ltd. set up its plant in the Pluakdaeng district of Rayong Province in 1997, the leading lines now being washing machines (40% of current output), air conditioners (25%) and TVs (20%). Microwave ovens and compressors for air conditioners are also produced.

Annual output at the plant, which is an affiliate of South Korea- based LG Electronics, Inc., reaches 4 million sets, with 60% for export. The facility also imports products from LG plants in other countries, selling them in the robust Thai domestic market. These include vacuum cleaners, refrigerators, monitors and mobile phones.

In the Thai domestic arena, at present LG enjoys a hefty 31% market share for washing machines and 17% for LCD TVs. With local society modernizing and the buying power of Thai citizens increasing, Thailand is proving to be an excellent location for the company. It sees the domestic market for washing machines and TVs in particular continuing to expand by at least 5% per year.

LG enjoys a long history in Thailand. The company first started manufacturing here during 1988 at a since-closed factory near Bangkok that served only the domestic market. Production is now concentrated at the huge 310,000 sq.ft. facility in Rayong. Mr. Cheol Yung Kim, production subsidiary president at the factory, said many factors give LG the edge in the industry. “Our advantage over competitors is our reliability, sophisticated production processes, cost-effectiveness, durability and quality,” he explained.

Top quality is certainly one of the keys to success at the plant. The company said quality is in the mind of every person in the line. Among the many steps for ensuring quality, some of the plant’s personnel are sent to LG headquarters for training of several months or even years depending on the position.

It was also pointed out that TDR or Tear Down and Redesign is a core project for achieving continuous progress of the company.

TDR involves the improvement of every aspect, all areas from personnel and the building itself to production and product quality.

Social care and concern for the environment are also important policies at LG Electronics (Thailand). Among many such activities, the company regularly donates its products to help support schools, police stations and local communities. It also grants scholarships each year for young Thai students.

Strong Confidence in Thailand

When considering three different countries in Southeast Asia for the new plant, LG was most impressed by Thailand’s many favorable investment circumstances. Mr. Kim noted that Thailand is an excellent operating base for its efficient infrastructure (including his plant’s closeness to the Laem Chabang deep-water port only 35 kilometers away) and centralized location amid the region’s fast-growing export markets. The country’s affordable skilled labor and generous government support of business are other advantages.

“I believe in Thai people,” Mr. Kim said. “They are very kind, skillful and diligent.”

The Thailand plant can be described as “a people company.” This is in line with the LG group’s corporate policy to respect workers, customers and all of society. Under one of the plant’s many assistance programs, the company pays all expenses for employees traveling to their provincial hometowns during holidays.

As for the Thai government’s pro-business attitude, the incentives offered by the Board of Investment (BOI) played a significant role in LG’s decision to choose Thailand. “The BOI is very helpful to investors,” Mr. Kim said. “The BOI incentive granting exemption on duties for imported machinery is especially helpful. This is because, as a home appliances and electronics company, we are continually investing in our production machines.”

The money saved by such incentives from the government can be used by LG to invest more in quality and productivity at the plant.

The parent company LG Electronics, with more than 115 operations and over 91,000 employees worldwide, is a global leader and technology innovator in home appliances, consumer electronics and mobile communications. Achieving global sales of US$49 billion in 2011, it is one of the world’s top producers of air conditioners, washing machines, refrigerators, flat panel TVs and mobile devices. LG invests in the future through innovative technologies, cutting-edge designs and unique products.

Since taking its very first step in 1958 as GoldStar, LG Electronics has an over 50-year history that can truly be called Korea’s history of electronics. LG Electronics has improved people’s living standards and has contributed to economic growth with aggressive investments and constant technological developments.

The corporate logo positions the “L” and the “G” inside a circle, with the two letters shaped into a stylized image of a human face. The symbol represents the ideal of humanity, along with the company’s goal to keep close relationships with its customers around the world. The modern and distinctive design is also regarded as symbolic of the company’s emphasis on excellence as it builds the LG brand by launching innovative and breakthrough products.