LG's bigger picture

South Korea's top appliance maker said its planned zł.335-million plant in Wrocław will be at the heart of its drive to save costs and increase sales in Europe.

"Building the white-goods plant in Poland, where global home-appliance makers have production bases, is meaningful in that we will compete head-on with them," LG said in a statement.

The new plant is to manufacture 500,000 refrigerators and 3.5 million liquid-crystal-display (LCD) televisions a year.

LG signed a deal in April with Polish authorities to begin a zł.352 million expansion of its television plant in Mława, in the north of the country.

LG will finance the investment between 2006 and 2011 with $56 (zł182) million from reserved money and by borrowing $47 (zł.153) million. (Reuters)