LG Electronics Inc. is forging an unexpected alliance with former rivals in a bid to strengthen its position in the budget appliance market and fend off growing competition from Chinese brands.

Industry insiders revealed on Monday that LG will introduce co-developed washing machines and refrigerators under its own brand across Europe later this month. The South Korean giant partnered with Skyworth Group Co. to design a 9-kilogram drum washing machine, and worked with AUCMA to produce a top-freezer refrigerator.

This marks the first time LG has collaborated with Chinese companies to develop home appliances. While LG led the product design and development, its partners will handle manufacturing under a joint development manufacturing (JDM) agreement. This structure contrasts with traditional OEM deals, as LG retains control of design while outsourcing production responsibilities.

By leveraging these partnerships, LG aims to offer competitively priced appliances without compromising its reputation for quality—particularly within its mid- to low-end product range.