LG shuts its first China factory after 33 years

LG Electronics will fully halt production at its Huizhou, China factory by the end of 2026, closing the company’s first manufacturing operation in China after 33 years.

Founded in 1993, the Huizhou plant is operated by LG’s local subsidiary LGEHZ. The company has told local employees that production will stop after October, with the manufacturing line scheduled to shut down by the end of the year.

The factory mainly makes XBOOM branded speaker systems. According to the source, LG decided to restructure its manufacturing footprint because of intense price competition from Chinese brands and the company’s broader shift toward higher-end audio products.

The plant produces about 2.6 million audio products a year, with annual output worth more than 2 billion yuan. But profitability has been falling for the past three years. Consolidated net profit dropped from 12.5 billion won in 2023 to 10.9 billion won in 2024, then fell again to 9.2 billion won in 2025.

A representative of LG Electronics' China unit confirmed the move, saying the company plans to close the Huizhou factory this year and has already notified employees that production will be suspended after October.

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LG has not yet finalized what comes next for the Huizhou subsidiary and the plant itself. One executive said the subsidiary is expected to stop production in October and that the company is considering several options for the site’s future operations.