Posted April. 20, 2005 23:12,
LG Electronics to Build New Plant in Russia-
A 150,000 pyong plant in Ruja worth $150 million (about 150 billion won) and that is scheduled to be completed in April next year.
The plant was jointly funded by LG Electronics, which invested $100 million, and seven component manufacturers who contributed $50 million. Once completed, it will roll out one million units annually each of washing machines, refrigerators, plasma display panels (PDP), LCD TVs, and stereos.
Around 300 Korean and Russian representatives participated in the groundbreaking ceremony, including LG Electronics chairman Koo Bon-moo, company vice chairman and CEO Kim Ssang-su, CIS regional manager Ahn Seong-deok, Korean Ambassador to Russia Kim Jae-seop, and German Gref, the Russian Economic Development and Trade minister.
LG Ready to Focus on Russian Market-
In a strategy meeting presided over by Chairman Koo, the participants decided to make additional investments into Russia`s electronics and chemical businesses, and start resource development and plant businesses.
LG Electronics expects to boost its revenue in premium products categories, including GSM (Global System for Mobile Communications) mobile phones. PDPs, and LCD TVs, to further upgrade its brand value in local markets.
LG International is also focusing on developing natural resources and doubling the number of helicopters imported from Russia to 100 units by 2008. In October this year, the company will start building the Russian Tartarstan Oil Refinery and Chemical Plant project, worth $3 billion.
Koo: Make LG the Premium Brand in Russia-
Koo emphasized the need to create synergies among LG affiliates, ordering closer cooperation between business units.
He also told heads of affiliates that the company should recruit high-quality Russian engineers to strengthen its global capability on research and development for future prospective businesses.