By Kim Yoo-chul
LG Electronics, the world's third-biggest home appliances manufacturer, is planning to invest 500 billion won or some $432 million in the "water treatment business" over the next 10 years.
LG said more details about the new business will be forthcoming later but the Seoul-based electronics company added it is eyeing to strike acquisition deals start the business off.
"Water scarcity has recently emerged as one of the top concerns in governments. As a corporate citizen to better handle social issues, LG decided on the water treatment business as its next earnings driver," said Lee Jin-se, a senior LG Electronics spokesman, Thursday.
Lee declined to comment which companies are possible targets for M&As. "One key point is it's clear that LG must boost competitiveness in the sector as early as possible by implementing various methods," Lee added.
LG plans to set up an independent unit composed of 70 people by the end of this year, while it has begun developing "membranes" ― a key component for water treatment.
General Electric of the United States and Siemens from Germany are the current leaders in the sector, while Samsung Group has been expanding its footprint.
LG's Lee said it is aiming to generate 7 trillion won from the water treatment business by 2020.
LG Electronics, which is facing difficulties in its key businesses of mobile phones and even televisions, is looking at future growth engines.
So far, LG said solar energy and healthcare are the fields that will be given more group-scale support, as well as the recently designated water processing operations.
"The water treatment business is a new growth engine," Lee Young-ha, the president of the company's home appliances division, was quoted as saying in the statement issued by LG.
The United Nation forecasts some 2.7 billion people and 20 percent of countries will suffer from water scarcity in 2025.