] LG Electronics
said it would spend 30-50 percent more on-year for research and development into key components of washing machines and air conditioners to maintain its competitiveness in the home appliance market.
“The motor and compressor plays a vital role in our home appliance business, so we will invest accordingly,” said Park Jung-hyun, vice president of LG’s compressor and motor business unit at a press meeting in South Gyeongsang Province last week.
LG Electronics employees work on washing machine motors. (LGE)
In line with the new plans, the company will increase the strength of its R&D workforce by more than 20 percent and initially double its development budget this year, Park said.
LG currently runs seven global manufacturing complexes for motors and compressors, including those in China, India and Thailand. The combined production from these plants reach an annual 30 million. Among them, LG’s Changwon manufacturing complex in Korea takes up around 70 percent.
The motors and compressors are utilized for LG’s washers, dishwashers and air conditioners. LG also supplies its compressors to U.S. air conditioner maker Carrier.
LG Electronics saw its operating profit increase 139 percent on-year in the April-June period, thanks to robust sales in high-end home appliances, including TVs and washers.
By Kim Young-won (firstname.lastname@example.org)