LG invests € 82 million in Poland

The company has decided to invest, by 2010, a total of € 82 million in the projected second DTV plant to respond to Europe’s rapidly growing DTV demands, together with its first plant in Mlawa. LUnder the agreement, the company will invest in constructing another DTV plant and the Polish government will provide full support. The rationale for LG Electronics’ decision on this investment is this rapidly increasing demands for digital TVs across Europe including Poland, as well as the Polish government’s support for its expanded operations, stable securing of manpower, and alignment of subsidiaries for creating synergic effects. Under the agreement, LG Electronics will invest € 82 million in digital TVs by 2010. The company will thus increase its annual production capacity for plasma and LCD TVs from current 1.5 million units to 3 million by 2006, 4 million by 2007, and 6 million by 2010, thereby seizing No. 1 spot in DTVs by 2007 in the European market which accounts for over 40% of the worldwide DTV market. Also, under the investment agreement, the Polish government will designate LG Electronics’ production complex as a special economic zone aimed at encouraging a vigorous investment by LG Electronics, and provide economic support such as investment-related incentives, employment and education subsidies, tax break, and infrastructure construction. With the designation of special economic zone, the projected Polish plant will have corporate tax exemption to 2017 and facilitate the securing of reinvestment finances.