---
title: "LG Electronics closes its first factory in China: 33 years of history end in Huizhou"
description: "LG Electronics is closing its first factory in China in Huizhou after 33 years of operation. XBOOM audio production will stop in October due to falling profits and fierce competition with local brands. 🇰🇷🏭🇨🇳"
date: 2026-07-21T12:43:34.000Z
lang: en
url: https://xab.info/en/posts/lg-electronics-closes-its-first-factory-in-china-in-huizhou
tags: [lg-electronics, huizhou, china, manufacturing, xboom]
publisher: "XAB.info"
---

# LG Electronics closes its first factory in China: 33 years of history end in Huizhou

![LG Electronics factory in Huizhou, China, at sunset, symbolizing the end of a 33-year history](https://xab.info/media/2026/07/21/lg-electronics-zakryvaet-zavod-v-kitae-v-hueichzhou/lg-electronics-zakryvaet-zavod-v-kitae-v-hueichzhou-1.webp)

South Korean tech giant LG Electronics has made the strategic decision to completely cease production activities at its factory in the Chinese city of Huizhou. This event marks the end of a 33-year era for the first production unit of LG Group in China, which was established back in 1993.

The company has notified the staff of its subsidiary LGEHZ (LG Electronics Huizhou) that production lines will be halted after October of this year. The final closure of the plant is scheduled for the end of the year. A representative of the Chinese division confirmed the closure, noting that employees have already been informed of the upcoming changes.

### Economics and reasons for closure

The decision to scale back production is dictated by harsh market realities. The Huizhou plant specialized in producing speakers for the popular XBOOM line. However, in recent years, the company has faced aggressive price competition from local Chinese brands.

Parallel to this, LG Electronics is undergoing a global transformation, reorienting towards the production of high-quality audio products. Consequently, management deemed it necessary to adjust the structure of its production base, abandoning outdated capacity in favor of more efficient solutions.

The plant's financial figures show an alarming trend. Annually, the enterprise produced about 2.6 million units of audio products, with production volume exceeding 2 billion yuan. Nevertheless, the profitability of the facility has been steadily declining over the past three years:

- In 2023, consolidated net profit amounted to 12.5 billion won.

- In 2024, this figure dropped to 10.9 billion won.

- In 2025, profit decreased to 9.2 billion won.

### Uncertainty of the future

Despite the decision to stop production, LG Electronics has not yet formulated a final strategy regarding the future of the subsidiary and the plant itself. One of the company's executives stated that after production ceases in October, various options for the use of assets and infrastructure will be considered.

Thus, the closure of the Huizhou plant becomes part of the corporation's global review of production chains, aimed at maintaining profitability and competitiveness against the backdrop of a changing market.