LG to set up $500 m home appliance production unit in Bangladesh

[CaPtAiN_pLaNeT]

Friday, December 16, 2011
Business
LG, Butterfly eye electronics plant in Bangladesh

LG, Butterfly eye electronics plant in Bangladesh

Star Business Report

South Korean electronics giant LG Electronics and local Butterfly Marketing are likely to set up a factory with a total investment of $500 million to assemble electronics products in Bangladesh, according to an official.

The first phase of the project will start next year with a joint venture entity to assemble refrigerator, Mustafizur Rahman Shazid, director (sales & marketing) of LG products distributor Butterfly Marketing Ltd, told The Daily Star by phone.

A number of electronics products such as television, microwave oven, air-conditioner, washing machine and other home appliances will be made at the factory to cater to the local market, now growing at 10-15 percent a year, according to the official. The factory will be set up at Bhaluka in Mymensingh, said Shazid.

He said the factory will employ around 5,000 people in the county after the completion of the project.

Earlier in the day, a delegation of LG Electronics called on Industries Minister Dilip Barua at his office and shared its intention to invest in Bangladesh, according to a statement issued by the industries ministry yesterday.

LG Electronics Vice President Junhwan Kim was present, among others, at the meeting. The delegation appealed to the government for allocating 100 acres of land in a special economic zone that the government plans to establish in future to promote investment.

 

[CaPtAiN_pLaNeT]

What is the current status of the deal with Samsung!!! Can any one tell me... Bangladesh should now encourage all the big electronics and car companies to move their manufacturing bases to Bangladesh... Apart from Samsung, Sony, GE, HP, Philips etc. should be priority for Bangladesh.

 

[CaPtAiN_pLaNeT]

LG wants to invest $500m in Bangladesh: ministry

New Age | Newspaper
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Staff Correspondent

The industries ministry on Thursday said South Korean LG Electronics had expressed interest to set up an electronics product manufacturing unit at Bhaluka in Mymensingh with an initial investment of $500 million.

A delegation of LG expressed the interest to set up the unit that would manufacture home appliances like refrigerator and LCD television at a meeting with industries minister Dilip Barua at his office in Dhaka, said a press release of the ministry.

The delegation expected that the plant would create jobs for 5,000 people.

Vice president of LG’ home appliance biz strategy department Junhwan Kim, manager Nathan Park, business manager of LG Singapore branch Allan Kim and Dhaka office managing director Jung, among others, were in the delegation, said the press release.

The LG delegation appreciated the investment environment of the country and said investment in Bangladesh is relatively profitable because of its internal market condition and low-cost labour, it said.

The company also expressed interest in setting up a larger electronics manufacturing unit in Bangladesh.

 

[eastwatch]

I have noted some previous news that said about South Korean investments in BD. But, usually they do not finally invest. This time also it may be talk only.

 

[Mosamania]

WoW Congratulations Bangladesh certainly has potential in this field.

what is interesting is that LG is setting up a plant in Bangladesh while Samsung is setting up a plant in Saudi Arabia at least the two rivals chose Muslim countries.

 

[Roybot]

Another pipe dream. Bangladesh needs to sort out its electricity problem first to see any such investment.

 

[eastwatch]

Another pipe dream. Bangladesh needs to sort out its electricity problem first to see any such investment.

I think, much of today's power shortage problem will be solved when finally LG starts operating. We really do not know about the timetable.

 

[TopCat]

Another pipe dream. Bangladesh needs to sort out its electricity problem first to see any such investment.

Big investor dont rely on National Grid. Power problem in BD is now in manageable level. I did not get a blackout in the last 2 mos

 

[Zabaniyah]

Big investor dont rely on National Grid. Power problem in BD is now in manageable level. I did not get a blackout in the last 2 mos

That's because it's winter.

 

[TopCat]

WoW Congratulations Bangladesh certainly has potential in this field.

what is interesting is that LG is setting up a plant in Bangladesh while Samsung is setting up a plant in Saudi Arabia at least the two rivals chose Muslim countries.

Samsung is going to setup 1.5 billion plant in BD too. I dont know the latest status. They asked government for land near Dhaka but idiots told them to go to Mongla...