LG Electronics expects robust sales in 2001<\/p>\n
JAKARTA (JP): Electronics manufacturer PT LG Electronics
\nIndonesia recorded US$170 million in sales in 2000, far exceeding
\nthe sales figure in 1999 of about $60 million and its initial
\ntarget of $150 million, an executive said on Monday.<\/p>\n
According to LG general manager Herman Surjadi, the company
\nprojected sales to increase by 47 percent this year to about $250
\nmillion.<\/p>\n
He attributed the higher than expected sales in 2000 to the
\nstart of the company's exports of TVCRs to European markets last
\nyear.<\/p>\n
The company started exporting TVCRs -- television sets with
\nbuilt-in video cassette players -- to Europe early last year, he
\nsaid, adding that during the year it had exported about 250,000
\nunits.<\/p>\n
"The European market still demands video cassette recorders
\n(VCR) because of their multiple channel TV. The VCR makes it
\neasier for them to record their favorite programs while they
\nwatch another channel on TV," Herman said, explaining that the
\nTVCR has no market in Indonesia due to the preference here for
\nVCDs and Laser Disc players.<\/p>\n
The launch of a new Flatron 15-inch television on the domestic
\nand international markets in February is expected to be able to
\nboost sales further this year, he said, adding that he hoped the
\ncompany could record at least $250 million in sales this year
\nwith the help of Flatron.<\/p>\n
"We are very optimistic (about our target) because the size of
\nthe market for electronics has also increased this year," Herman
\nsaid.<\/p>\n
LG marketing manager Sung Khiun said that the Indonesian
\nelectronics market increased about 30 percent this year, and was
\nback to its precrisis levels.<\/p>\n
Demand for televisions is projected to increase to about 2.4
\nmillion this year from 1.8 million in 2000, he said, while for
\nrefrigerators the figure is expected to increase to 1.2 million
\nthis year from 900,000 in 2000.<\/p>\n
The demand for washing machines is also estimated to rise to
\n340,000 this year, from 250,000 the previous year, and air
\nconditioners to 250,000 from 180,000 in 2000, Sung said.<\/p>\n
The return of the demand for electronics to its precrisis
\nlevel was mainly because of the increase in Indonesia's
\npopulation rather than an improvement in purchasing power, he
\nsaid.<\/p>\n
"As we know, before the crisis there were about 40 million
\nfamilies in Indonesia, now the number is definitely far higher,"
\nSung said.<\/p>\n
In response to the increase in domestic demand for
\nelectronics, LG spent about $5 million last year on expanding its
\nfactory and adding another production line for its televisions
\nwhich constitute about 50 percent of its total sales, Herman
\nsaid.<\/p>\n
"We need to add another production line in our factory (for
\nproducing 15-inch Flatron), because previously we only produced
\n14-inch and 20-inch color televisions and TVCRs for export," he
\nexplained.<\/p>\n
This year, LG would also invest an additional $10 million to
\nexpand its production capacity for refrigerators, Herman said,
\nadding that total investment as of 2001 amounted to about $46
\nmillion.(tnt)<\/p>",
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