LG Smart Park: A Cutting-Edge Hub of Home Appliance Innovation in Changwon

Located in Changwon, South Korea, LG Smart Park is a futuristic manufacturing hub that exemplifies the future of home appliance production. Recognized as a Lighthouse Factory by the World Economic Forum (WEF) in 2022, LG Smart Park represents the pinnacle of LG’s digital transformation, which began in 2017. This state-of-the-art facility integrates advanced technologies to optimize production and stay ahead of market demands.

A Lighthouse Factory

A Lighthouse Factory is a manufacturing facility that showcases the possibilities of the Fourth Industrial Revolution (4IR) by incorporating cutting-edge technologies like the Internet of Things (IoT), big data, artificial intelligence (AI), and robotics. First introduced by the WEF in 2018, Lighthouse Factories are recognized for their innovative use of these technologies. LG Smart Park in Changwon, along with LG’s Tennessee factory, joined the global network of Lighthouse Factories in 2022 and 2023, respectively.

Unmatched Manufacturing Flexibility and Efficiency

LG Smart Park can manufacture up to 58 different home appliance models on a single production line, thanks to ‘Digital Twin’ technology and autonomous robots. This technology allows LG to deliver unprecedented flexibility in production while achieving significant improvements in manufacturing efficiency. The facility leverages these tools to anticipate challenges, manage resources effectively, and quickly adapt to changes in demand.

Optimizing Production with Digital Twin Technology

At the heart of LG Smart Park’s operations is ‘Digital Twin’ technology, which replicates the entire production process in virtual reality. This allows real-time simulations and rapid identification of potential issues. For instance, the system can predict problems such as material shortages within the next 10 minutes, enabling factory workers to address issues before they disrupt production. This proactive approach has led to a 70% reduction in defective-product returns from 2020 to 2021, highlighting the technology’s effectiveness in improving product quality.

Three-Dimensional Logistics System

LG Smart Park has revolutionized logistics with a three-dimensional system that optimizes factory space. Instead of relying on traditional logistics methods, the facility uses an overhead conveyor system to transport refrigerator parts across three floors, reducing space usage by 30%. In addition, Automated Guided Vehicles (AGVs) powered by 5G technology transport materials across the factory floor with remarkable efficiency, reducing the time needed for materials transportation by 25% and minimizing production interruptions by 96%.

AI-Driven Advanced Analytics

LG Smart Park’s advanced edge computing technology and machine learning enable the factory to perform predictive maintenance and optimize production. By collecting vast amounts of data (up to 500GB daily), the facility analyzes this information in real-time to predict potential failures and ensure high-quality production. This system has reduced product defect identification time by 50% and decreased product defects by around 30%.

Intelligent Automation and Robotics

Robotic arms equipped with 3D vision recognition technology perform complex tasks, such as attaching refrigerator doors weighing over 20kg, with precision and consistency. These robots free up workers to focus on higher-level tasks like product completion and quality control, improving both the efficiency and safety of production.

LG Smart Park’s Expansion

Building on its success, LG is currently constructing LG Smart Park 2, which will span 420,000 square meters — nearly double the size of the original facility. Set for completion in 2025, this new facility will include production lines for refrigerators, ovens, and dishwashers, all designed to integrate the latest innovations in manufacturing technology.

LG Tennessee Factory: A Global Presence

In addition to the Changwon hub, LG operates a state-of-the-art factory in Montgomery County, Tennessee, USA. Completed in 2018, this facility uses AI, big data, and robotics to produce front-load and top-load washing machines and dryers, with an annual production capacity of 1.2 million washers and 600,000 dryers. Its location allows LG to better respond to North American demand, further solidifying the company’s global manufacturing footprint.

Advancing the Smart Factory Business

Leveraging its expertise in intelligent factory design, LG has expanded into the global smart factory market. In 2023, LG established a dedicated division within its Production Engineering Research Institute (PRI) to commercialize its smart factory solutions. These offerings include AI-driven production planning, operations management, and Digital Twin technology — designed to enhance customers’ manufacturing capabilities and drive continuous improvement in factory performance.

Through these initiatives, LG is positioning itself as a leader in the future of intelligent manufacturing, delivering innovative solutions that not only enhance its production processes but also benefit its customers by improving manufacturing efficiency, quality, and sustainability.