LG Plans New Europe Plant, Expansion in Mexico
Apr 20, 2005
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South Korea's LG Electronics said it planned to build a new plant in Eastern Europe and increase capacity at its Mexico plant in a push to become the top appliance maker by 2007.
LG, said to be the world's biggest maker of air-conditioners and the fourth-largest mobile phone maker, said it expected global sales at its home appliance unit to reach U.S. $14 billion by 2007, up from $10 billion expected for 2005.
"LG Electronics plans to set up a new production center in the Eastern Europe region to increase sales of high-end products to Europe," the company said in a statement. "In the meantime, we will expand the digital appliance plant in Mexico within the second half to more than double its capacity."
LG would look to site the new plant in a European Union member country in Eastern Europe, a company spokesman said.
The company's home appliance unit produces refrigerators, washing machines, air-conditioners, and other appliances.
LG said in February it planned to build a plant in Russia to make home appliances. It has also signed a $115-million deal with the Polish government to expand a television facility there. (Reuters)
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