LG Chem has sent a task force to Poland to reorganize its factories there, TheElec has learned.
The South Korean battery giant aims to improve management efficiency, clear inventory and secure a stable yield rate at its factories in Kobierzyce near Wroclaw.
The four month reorganization has already started and will end by November.
The reorganization is being conducted as the LG Chem’s Poland factory has grow to produce tens of GWh of batteries per year, becoming more and more important for the company.
In March, LG Chem acquired Turkish appliance firm Vestel’s TV factory at Poland for US$31.4 million and is converting it to a battery factory.
Its existing factory in Poland is seeing the line dedicated to Volkswagen’s Modular Electric Drive (MEB) platform increase in yield rate. However, there were opinions internally that some resources were being used inefficiently. The company concluded that it needs to clear its inventory.
LG Chem also put in more automation solutions to improve and tweak existing production lines.
The assets that were left from this process and slurry wastes were cleared, people familiar with the matter said.
LG has two factories in Poland that in total has seven production lines. Combined, they are expected to produce 40GWh of batteries this year. The company is aiming to produce between 100GWh to 110GWh in total globally this year.