LG Halts Mexican Mobile Phone Production

SEOUL, South Korea (AP) -- LG Electronics Inc. said Thursday it plans to shut down a mobile phone production line in Mexico after the government earlier this year dropped a 15 percent import tariff on the devices.

The facility, located in Mexicali, produces 200,000 phones a month and employs 200 people, said LG spokeswoman Judy Pae. She said nothing has been decided about the future of the workers.

Pae said the dropping of the tariff means there is no longer any need for LG to manufacture the phones in Mexico. Instead, LG plans to supply mobile phones to Mexico from its plant in Sao Paulo, Brazil, where it manufactures over one million handsets a month, she said.

She said LG plans to continue producing liquid crystal displays and monitors at the Mexicali facility. Mexicali is located on the border with the U.S. state of California.

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