LG, LS firms eye overseas production bases for long-term growth

LS Group Chairman Koo Ja-eun, second from right, visits L&K in Germany. [Photo provided by LS Group]

Leaders of South Korea’s LG Group and its offshoot groups, which have been cruising through the first half of the year despite challenging external environment, recently visited their overseas production bases, showing the commitment to developing new markets and securing mid- to long-term growth drivers.

According to LS Cable & System Ltd. on Sunday, LS Group Chairman Koo Ja-eun began his first overseas on-site management after taking office to strengthen the company’s position in the European value chain for electric mobility. Koo visited Germany, Poland and Serbia from April 2-10 to inspect operations of LS Cable and Superior Essex (SPSX), where sites to manufacture copper wires for electric cars, battery parts and communication cables are located.

SPSX, a U.S. cable manufacturer affiliated with LS Group, acquired L&K, the largest oxygen-free copper (OFC) manufacturer in Europe, in January this year to respond to the rapid increase in EV demand in Europe.

L&K can produce about 65,000 tons of OFC, a core material for EV drive motors, annually. It also produces special cables used in advanced precision technology fields such as aerospace and healthcare industries. LS supplies OFC produced by L&K to SPSX sites in Germany and Serbia.

“We will strengthen the position of LS in Europe and reorganize our business based on high value-added products and improve production efficiency to respond to the European electric vehicle market,” Koo emphasized during his visit to L&K.

Subsequently, Koo visited a plant of LG Energy Solution Ltd. in Wrocław, Poland and discussed business cooperation, while touring the manufacturing process of EV batteries. LS Group plans to strengthen its battery and EV businesses to achieve its vision of growing its assets to 50 trillion won ($37.88 billion) by 2030.

LG Electronics Inc. Chief Executive Officer Cho Joo-wan, second from right, visits a factory in Thailand on Apr. 4. [Photo provided by LG Electronics]

LG Electronics Inc. Chief Executive Officer Cho Joo-wan is accelerating his overseas market strategy by visiting Southeast Asian countries.

According to the company, Cho visited Vietnam, Thailand and Indonesia in sequence from April 3-7. He held a management meeting on April 3 in Ho Chi Minh, Vietnam, and received a report on the status of business in the Asian region, including Vietnam, the company’s global production base for military equipment and home appliances.

On April 4, Cho visited a factory in Thailand and inspected production lines for household appliances such as washing machines and air conditioners. Two days later, he moved to Jakarta, Indonesia to inspect OLED TV and refrigerator manufacturing processes.

LG Electronics has designated Asia, with significant growth potential, as a strategic market and plans to expand its market dominance by refining local strategies tailored to each country. LG Electronics achieved 7.8 trillion won in sales in the Asian market last year.