Korean LG to have three new plants in Brazil
DCI
The Korean multinational LG intends to grow 30% this year, reaching an income of US$ 4 billion in the country. According to the marketing officer of the company in Brazil, Humberto De Biase, the company will have an "aggressive posture" to get to the leadership in the segments in which it operates in the country. To do that, in 2011 the manufacturer will launch 600 products, well above the 120 products launched in 2010, and it plans to start the operations of three new plants in December.
The investment will amount to nearly US$ 300 million for the new production plants. Two of them in Manaus, intended for the production of air conditioners and liquid crystal display (LCD) televisions. And the other will be in Paulinia (SP) and it will be intended for white line products.
According to De Biase, the decision of producing the LCD screens locally resulted from the growth in the sales of flat screen televisions in the first half of last year, thanks to the broadcasting of the FIFA Soccer World CupTM. In that period, the company registered 40% of increase in the sales. According to him, LG currently withholds a 28.5% share in the sales of thin screen televisions in the country. With the new plant, the production of LCD TVs will be increased by 30%. Not to mention the reduction in the costs with tax exemptions.
To start producing white line products right away, which so far was being imported by the company, the investment in the first year will amount to US$ 115 million. The new unit, located in the interior of São Paulo, will be intended for the manufacture of refrigerators and washing machines. With the start of the local production, the forecast of LG is to reduce the cost of white line goods and air conditioning equipment in up to 30% for the consumer. According to De Biase, white line products correspond to 13% of the earnings of LG in Brazil. "Our goal is to get to the sector leadership in 2014", he stresses out.
With the new plants, the Asian multinational will have five plants in Brazil. There is already a unit installed in Manaus, which produces TV sets and audio and video equipment, and a plant in Taubaté (SP), responsible for the manufacture of mobile phones, notebooks and monitors. Altogether, LG has 5.5 thousand employees, and the expectation of hiring another 2.3 thousand for the next two years, with the new operations. Worldwide, the Korean manufacturer has grossed US$ 48.2 billion last year, with 117 operations and 89 subsidiaries. The company also has 80 thousand employees and 31 research and development centers.