By Kim Yoo-chul
LG Hausys, Korea’s biggest building and decorative materials firm, plans to invest $60 million to build its second plant in China as the demand for high-end household-related materials steadily increases.
The investment plan comes after key LG Group affiliates ― LG Electronics, LG Display and LG Chem ― are heavily betting on China and led directly by LG Chairman Koo Bon-moo with a pledge to pinpoint more areas for business expansion.
``LG Hausys is one part of Koo’s `China-focused’ business initiatives. The group is positive about Hausys’ China-related business plans,’’ said a senior LG Group executive.
This foreshadows the company significantly boosting its presence in China. LG Hausys targets $600 million in revenue in China by 2015 from the $200 million that it had reaped last year.
The new factory will be located in Wuxi, Jiangsu Province. Since 1997, LG Hausys has been operating a manufacturing line in Tianjin.
``Various highly functional materials for buildings, apartments for affluent households will be produced from the new factory,’’ said Lee Dong-joo, a chief public relations officer at LG.
``China is crucial for LG Hausys to spur corporate expansion. We are mulling the possibility to increase investment in China,’’ Lee added, Thursday.
The South Korean company is going to start the operation of its research and development (R&D) center and decorative-parts production line from early 2013, it said in a statement.
The company was established through a spin-off of the industrial material segment from LG Chem, Korea’s No. 1 chemical firm.
LG Hausys operates in two business segments ― construction materials, functional materials and components. Construction materials include polyvinyl chloride (PVC) windows, aluminum windows, flooring, wallpaper and artificial marble products.
Its functional material and component segment provides gloss and decoration sheets and functional adhesive materials, as well as automotive components.