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LG CNS Secures First Korean Partnership with Honeywell for US Factory AI Market

The company targets manufacturing automation clients through joint development of smart factory technologies
South Korea
l 064400.KO Mid and Small Cap 2000
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LG CNS became the first South Korean company to partner with Honeywell as an official AI and IT service provider, marking the Seoul-based technology firm’s latest attempt to crack the lucrative US manufacturing market.

The partnership will combine LG CNS’s AI transformation consulting capabilities with Honeywell’s industrial automation expertise to develop what both companies call “AX technologies” — AI-based factory automation and intelligence systems. The companies plan to build a manufacturing execution system applicable to semiconductors, batteries, and petrochemicals.

LG CNS posted record first-quarter revenue of 1.21 trillion won ($835 million) this year, with cloud and AI business accounting for 59% of total sales. The company has been aggressively expanding overseas after achieving annual sales of 5.9 trillion won ($4.07 billion) in 2024.

The partnership centers on LG CNS’s AI problem-solving agents analyzing production data from Honeywell’s distributed control systems in real-time to identify issues and provide immediate solutions. The companies will leverage Honeywell’s network of over 100 large global manufacturing customers to expand their joint offerings.

However, LG CNS faces stiff competition in the US market from established players like Siemens and General Electric, who already maintain extensive relationships with American manufacturers. The company’s success will depend on demonstrating clear cost advantages and performance improvements over existing automation solutions.

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