Appliance and consumer electronics maker LG Electronics announced plans to build a U.S. $103-million home appliance plant in Wroclaw, Poland, to produce refrigerators and liquid crystal display (LCD) TVs targeting the Eastern European market.
The Korea-based company said it will invest a total of $103 million into the Polish plant by 2011. The company plans to break ground of the construction site in the first half of 2006. The plant will begin production at the end of 2006 and produce 500,000 refrigerators and 3.5 million LCD TVs annually by 2011.
"LG is the first Korean electronics firm to establish a plant for white goods in Poland, which serves as a production base for the Eastern European market for global white goods makers such as Whirlpool and Electrolux," said an LG Electronics spokesman.
LG Electronics’ investment plan in Poland will be carried out in conjunction with LG.Philips LCD’s LCD module plant construction project in Wroclaw.
Earlier this month, LG.Philips LCD, a joint venture between LG Electronics and Royal Philips Electronics of the Netherlands, announced its plan to invest a total of 429 million euros (approx. $535.5 million) in the plant by 2011, at which time it is scheduled to reach its design capacity of 11 million units per year.
The commercial production of the LCD maker’s module plant is slated for the first half of 2007. The plant will begin with an initial production capacity of 3 million modules per year.
The European white goods market is forecast to grow to $45 billion this year, accounting for one-third of the global market, up from $42 billion in 2004. (The Korea Times)
Back to Breaking News