The company has decided to invest, by 2010, a total of USD 110 million in the projected second DTV plant to respond to Europe’s rapidly growing DTV demands, together with its first plant inMlawa.
LG Electronics and the Polish government signed an investment agreement at the Press Center of the Polish investment agency (Palilz) on April 11. Among participants in the event were Yoon Sang-han,Executive Vice President and concurrently head of Digital Display unit, No Seog-ho, President of the Polish Subsidiary, Polish Economic Minister Jacek Piechota, investment agency head AndrzejZdebski,and other personnel. Under the agreement, the company will invest in constructing another DTV plant and the Polish government will provide full support.
The rationale for LG Electronics’ decision on this investment is this rapidly increasing demands for digital TVs across Europe including Poland, as well as the Polish government’s support for itsexpanded operations, stable securing of manpower, and alignment of subsidiaries for creating synergic effects.
Under the agreement, LG Electronics will invest USD 110 million in digital TVs by 2010. The company will thus increase its annual production capacity for plasma and LCD TVs from current 1.5 millionunits to 3 million by 2006, 4 million by 2007, and 6 million by 2010, thereby seizing No. 1 spot in DTVs by 2007 in the European market which accounts for over 40% of the worldwide DTV market.