South Korean consumer electronics maker LG Electronics is considering Malaysia as its regional logistics center for South-East Asia.
LG Electronics (M) Sdn Bhd managing director I.G. Kim said the company will conduct an in-depth study on the viability of Malaysia as its regional logistics center. "We are considering Malaysia to deliver LG products to the rest of the region, taking advantage of the Asian Free Trade Area (Afta). We will come out with a more concrete plan later," he said.
Mr. Kim said LG Electronics Malaysia currently has an assembly line in Port Klang, which assembles LG products like refrigerators, washing machines, and television sets. On whether LG Electronics Malaysia will establish its production base in Malaysia, Mr. Kim said "It is too early... we are more into the setting up the logistics center here."
LG Electronics opened LG Electronics Malaysia, it's 74th subsidiary in the world, in mid-March 2005. LG Electronics Malaysia has a paid-up capital of U.S. $7.5 million.
Although LG Electronics is the last of the global consumer electronics players to have a direct presence in Malaysia, six of its products are already one of the market leaders in the country such as air-conditioners, refrigerators, washing machines, DVD players, and plasma TVs. (Business Times)
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