LG Hausys renews global focus

By Kim Yoo-chul

LG Hausys, an LG Group-affiliate that manufactures quartz and acrylic surfaces, is seeking to find new business momentum in international markets amid stalled local business growth.

Profit and revenue are steadily falling as the sales of the company’s main products including floor tiles and sheet products are dependent upon the housing market.

Weak consumption and tightening loan conditions mean real estate transactions have maintained sluggish, threatening the firm’s bottom line.

``That’s why LG Hausys is spending cash for the satisfaction of our target customers in international markets. We are increasing our marketing skills to seek international customers,’’ said Lee Dong-joo, a chief of LG’s public relations office, Tuesday.

LG Hausys said the firm has opened what it claims is a customized website (www.lginterior.com) to widen its presence in business-to-consumer (B2C) sectors in China.

In a statement, the company also added its integrated site (www.lghausys.com) will play a significant role in attracting more international customers.

``By the end of this year, we will open online sites for our strategic products in languages such as French, Spanish, Russian and German,’’ Lee said, stressing that countries in Europe and South America are its next targets.

LG Hausys plans to lift the sales portion from international markets to over 40 percent of its total sales by 2014. LG is looking for some 800 billion won from abroad by the end of the year, up from 700 billion won last year.

Quarterly sales reports were disappointing as rising material costs and sluggish real estate-related markets sapped the demand for its products.

Sales during the second quarter of this year amounted to 627.8 billion won, an increase of 5 percent year-on-year. Operating profit during the previous quarter was 16.4 billion won, a drop of 25.1 percent from a year ago, while net profit during the April-June period decreased 26.2 percent to 10.8 billion won.