UPDATE 1-LG to integrate Mexico plants, invest $100 mln

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SEOUL, July 7 (Reuters) - LG Electronics Inc (066570.KS) said on Tuesday it would restructure its Mexican production bases to focus on flat-screen TVs and appliances and to boost output from the country by more than 50 percent by 2012.

South Korea-based LG, the world's No. 3 mobile phone and LCD television maker, said in a filing to the Korea Exchange that it would integrate three plants currently operating in Mexico into two, closing its facility in Mexicali and expanding plants in Reynosa and Monterrey.

It will invest $100 million in Mexico over the next three years and aims to increase production in the country -- its production hub for the Americas -- to $4 billion in 2012, from $2.6 billion in 2008.

LG last month withdrew a mobile phone production line at its Mexicali plant as a tariff on handsets was scrapped this year, making local production less competitive. The LCD TV business at Mexicali will be taken over by the Reynosa plant, LG said.

The Monterrey plant will focus on appliances and LG plans to add microwave and gas ovens to its product lines.

LG said the restructuring was expected to create about 2,500 jobs.

As of 0016 GMT, LG Electronics shares had risen 2 percent, leading the wider market's 0.2 percent gain. (Reporting by Rhee So-eui and Cheon Jong-woo; Editing by Jonathan Hopfner)