LG Opens New Scroll Compressor Production Line in Mexico

Increased Manufacturing Capacity to Strengthen Company’s Competitiveness,
Help It Meet Growing Demand From North American Businesses

SEOUL, Jan. 19, 2024 — LG Electronics (LG) announces the opening of a new scroll compressor production line at its factory in Monterrey, Mexico. The new line bolsters LG’s scroll compressor manufacturing infrastructure, enabling the company to produce more of its acclaimed, eco-conscious solutions while creating a shorter supply chain for servicing customers across North America.

LG’s decision to establish a production line in Mexico comes at a time when many U.S. heating, ventilation and air-conditioning (HVAC) manufacturers are facing challenges due to escalating logistical disruptions. The strategic move places an LG scroll compressor production base in close proximity to key North American markets; setting up a production/logistics system that will help the company better respond to regional demand and lessen the impact on customers of factors such as logistic issues.

LG’s scroll compressors play a major role in the company’s HVAC components business. At AHR Expo 2023 in Atlanta, Georgia, LG showcased its energy-efficient Gen 3 Scroll Compressors for residential air conditioners and heat pumps, as well as large-capacity scroll compressors for commercial system air conditioning.

Designed with the future in mind, Gen 3 Scroll Compressors are symbolic of LG’s continuing leadership in HVAC innovation. In anticipation of refrigerant regulations taking effect in 2025,¹ and in line with the company’s commitment to the environment and sustainability, the compressors utilize low Global Warming Potential (GWP) refrigerants. With GWPs less than 700 – far lower than the 2,088 GWP of R410A – these refrigerants easily meet the newest eco-focused standards for refrigerants. The structure of the Gen 3 Scroll Compressors also helps to ensure compliance with the latest efficiency standards² by reducing energy waste and heat loss.

“The new, state-of-the-art production line in Mexico will enable us to produce more of our eco-conscious scroll compressors and fortify our ability to service the North American market,” said Kim Yang-sun, head of the Component Solution Business Unit at LG Electronics Home Appliance & Air Solution Company. “LG will continue to provide advanced technologies and components to meet the diverse needs of its global customers.”

_{¹ The state of California has passed legislation that will ban the use of refrigerants with a GWP over 750 from the year 2025.}

_{² LG’s compressors meet the requirements of the U.S.’s new HVAC efficiency standard, which went into effect on January 1, 2023.}