### LG to Close Mexicali Plant by Year-End
**Authored by Eduardo Villa – August 20, 2024**
After 30 years of operation in Mexicali, the South Korean tech giant LG has announced that it will formally shut down its manufacturing plant by the end of December 2024 or early January 2025. This closure will impact roughly 800 direct jobs currently held at the facility.
The Secretary of Economy, Kurt Honold, confirmed the closure, reassuring that the regional job market’s high demand would facilitate the reemployment of affected workers over the next few months as the plant winds down its operations. The plant, located in the PIMSA II Industrial Park on Venustiano Carranza Boulevard near the Palaco corridor, is in its final phase of operation.
The closure stems from a decline in the company’s product sales in the region, prompting LG to make this decision last year. Despite this, Secretary Honold emphasized that Mexicali remains attractive to investors, and the closure is not due to unfavorable economic conditions in the region.
The plant’s shutdown will also affect about 800 jobs in the surrounding supplier businesses, which had set up operations to serve LG. Efforts are also underway to help these workers find new employment. Some of these suppliers have already started servicing other companies, like Samsung, maintaining their operations and minimizing job losses.
During a recent investment attraction trip to Asia, state officials discussed the closure but also explored opportunities to bring new businesses to Mexicali and to expand investments from existing multinational corporations.
As LG moves into the last phase of its Mexicali operations, it is in the process of relocating its machinery and other assets.
—
**Additional Related News**
### LG Announces Global Restructuring Amid Declining Sales
Amidst its global restructuring efforts, LG Electronics recently reported a significant decline in profits due to competition from rivals and supply chain disruptions caused by global economic challenges. The company stated it would divert resources to expanding its digital and smart technology divisions, moving away from traditional manufacturing plants in various locations, including Mexicali.
According to industry experts, LG’s restructuring includes scaling down less profitable operations and investing more in cutting-edge sectors like artificial intelligence, electric vehicle components, and smart home technologies. This strategic shift aims to position LG as a major player in these emerging markets.
Workers in Mexicali have expressed mixed reactions to the closure, with some hopeful for reemployment opportunities and others anxious about immediate job losses. Local officials are collaborating with other tech firms in the area to absorb the displaced workforce, ensuring a smooth transition and sustained economic stability in the region.
**Stay tuned to TJGringo.com for more updates on this developing story and other local news.**