LG launches digital TV production line

LG launches digital TV production line

Eva C. Komandjaja, The Jakarta Post, Jakarta

PT LG Electronics Indonesia (LGEIN) has invested US$1 million
to open a new production line capable of producing 12,000 digital
projection TVs a year.

The new production line, which is the fourth line at the
company's Tangerang factory, is expected to boost LG's market
share in Indonesia from 10 percent in 2003 to 20 percent in 2004.

With the new line, LGEIN is also looking to become a market
leader in projection TVs by 2005 with 30 percent of the total
projection TV market share in Indonesia.

Young Ha Kim, president of LGEIN, said on Monday the market
growth for digital TVs in Indonesia was projected at about 50
percent a year. He estimated that LG could increase its sales
from 20,000 units in 2003 to 30,000 units in 2004.

Kim said it would be more efficient and more flexible to build
projection TVs here in Indonesia, rather than importing them from
outside.

The 40-meter-long line has produced five TV models, two of
which are 43-inch TVs, one is 44 inches and two 54 inches. Every
unit produced by the line has a local content of 10 percent.

However, Kim said LGEIN realized that digital TV prices
remained high. The TVs are aimed at the middle to upper classes,
so LGEIN is displaying the products in shopping malls, private
clubs and upscale restaurants to increase sales.

Currently, about 75 percent of LGEIN's production in Indonesia
is of conventional TVs. Flat TVs account for 20 percent,
projection TVs 5 percent, while the rests are LCDs and CRTs.

LGEIN expects that in 2006 only 40 percent of the total market
in Indonesia will use conventional TVs, while the rest will be
using high-tech TVs such as digital or LCD TVs.

Currently, LGEIN produces approximately five million TV units
a year, of which 45 percent are exported to other countries.