LG to invest $500m in RI

LG to invest $500m in RI

SEOUL (Reuter): LG Electronics Co said on Tuesday it planned
to invest US$500 million over the next five years to set up a
major production base in Indonesia for electronic and home
appliance goods.

An LG Electronics statement said it wanted Indonesia to become
one of its three major production centers in Asia, along with
South Korea and China.

The Indonesian facilities will also serve the Southeast Asia
market.

LG will spend $430 million to set up a wholly-owned
subsidiary, LG Electronics Display Devices Indonesia, to make
monitors, VCRs and electronics spare parts, it said.

The statement said the Indonesian subsidiary had set a sales
target of $209 million for calendar 1996 and $788 million for the
year 2000.

It said $70 million would go to expand the production lines of
PT LG Astra Electronics, an existing joint venture between LG
Electronics and its local partner, PT Astra International.

The venture currently makes color televisions and
refrigerators. It will also make washing machines, air
conditioners, microwave ovens, CD-ROM drives and multimedia game
players by 2000 and is expected to post sales of $153 million
this year and $455 million in 2000, the statement added.