S. Korea to invest in home appliance base
S. Korea to invest in home appliance base
SEOUL (AFP): South Korea's Goldstar Co. will invest US$580
million in Indonesia over the next five years to build a joint-
venture home appliance production base, a company spokesman said
yesterday.
"We opted for Indonesia to build it as a strategic,
comprehensive production base in the Southeast Asian region,"
said the spokesman, adding that Indonesia would emerge as its
third largest operation outside South Korea and China.
It will establish a new Indonesian joint venture within the
year with an initial investment of $160 million to produce three
million color television tubes a year.
Golstar's investment in the joint venture will swell to $510
million by 2000, raising its annual production capacity to 10-
million tubes, and also allow manufacture of core TV parts such
as deflection yokes, flyback transformers and computer monitors.
New production lines are scheduled to operate in the latter half
of 1996, the spokesman said.
Goldstar will pour another $70 million into PT Goldstar Astra,
its existing Indonesian joint-venture, to set up new production
lines for 100,000 washing machines and another 100,000 air
conditioners a year.
The joint venture will be supplemented by new production lines
for color televisions and refrigerators, from the current 200,000
and 70,000 units a year to one million and 200,000 units each by
2000.
PT Goldstar Astra, established in 1991 at a cost of $13
million, chalked up $22 million in sales last year. Its sales
projections for 1994 and 1995 are $46 million and $100 million
respectively, the spokesman said.
A Goldstar official said products from the Indonesian joint-
ventures would be exported to neighboring Asian countries and
other world markets, as well as sold in the promising Indonesian
market.
Goldstar has been actively strengthening offshore production
bases, setting up color television and video cassette recorder
factories in China, expanding color television factories in
Mexico, and building other electronics factories in Britain.