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LG to Increase Investment in China
LG Electronics Group of the Republic of Korea (ROK) has decided to increase its investment in China by US$430 million over the next three years.
High-ranking officials with the LG Electronics Group explained that they made the decision because many businesses backed by the group in China are successful.
LG Shuguang Electronics Co., Ltd., the largest Sino-ROK joint venture based in Changsha, capital of Hunan Province in central China, has made a net profit of 50 million U.S. dollars since 1997.
LG Shuguang, a high-tech venture mainly engaged in the production of kinescopes for TV and computer, was launched in late 1994 and began to make profit in 1997. The company is expecting a total output value of four billion yuan (US$481.9 million) and sales up to 270 million U.S. dollars this year.
In an interview with Xinhua, a corporate executive said the joint venture will build another factory in Changsha next July with a designed annual production capacity of two million kinescopes.
Upon completion of the new factory, the joint venture will be able to produce seven million picture tubes annually, second only after LG's production base in its' home country.
LG has so far set up 10 factories and six subsidiaries in China, with more than 10,000 employees. The scope of production ranges
from TV sets, picture tubes, computer displays, and microwave ovens.
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