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.