SEOUL, Aug. 31, 2010 - LG Electronics (LG) today announced plans to expand its production facilities in Wroclaw, Poland as a component of its strategy to become the worlds' largest home appliance company in four years' time.
LG will increase production of washing machines and refrigerators -- two of LG's most popular appliance products - in Poland, a key production hub in Europe for the company. The addition of a new manufacturing line for washing machines next year will mean that the Wroclaw plant will be able to produce 700,000 units a year. And starting in 2012, output of refrigerators will expand to 1.4 million units from the current 300,000 units.
Given that demand in Europe often has to be met with machines manufactured in China or South Korea, LG expects the increased capacity from Poland to lead to significant cost savings and more efficient supply chain management, the benefits being passed on to consumers in Europe. A large part of the increased production is to prepare for the rising demand for appliances in North African markets such as Morocco and Tunisia.
"The European appliance market is critical to our future success and we are confident in our ability to keep up with the growing demand from consumers there," said Young-ha Lee, President and CEO of LG Electronics Home Appliance Company. "Increasing our presence in Poland allows us to better address Europe and North Africa demands, putting us well on course to become the world's top home appliance company by the middle of the decade."
