LG Electronics will invest about $600 million over four years in a plant to be built in the southern state of Andhra Pradesh. The plant will start producing air conditioners next year, followed by washing machines, refrigerators and compressors by 2029, the Andhra Pradesh government said in a separate statement.
The investment underscores the importance of the world's most populous country to LG as it seeks to make the country a manufacturing base for its global operations. The move comes after a planned $1.5 billion initial public offering was shelved due to volatile market conditions.
Jae-cheol Liu, president of LG Home Appliance Solution Company, called the investment an important step towards “expanding our partnership with India.”
In addition to supplies to foreign markets, the new facility will help the home appliance manufacturer meet the growing demand for home appliances in the country, driven by growing prosperity and warmer summers.
Source: Bloomberg
