LG has told media outlets in Korea that it would spend 30-50% 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 order to achieve the aim LG said it 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 has 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 components with LG’s Changwon manufacturing complex in Korea producing around 70% of that volume.
The motors and compressors are utilised for LG’s washers, dishwashers and air conditioners and LG also supplies its compressors to US air conditioner maker Carrier.
It is also reported that LG saw its operating profit increase 139 percent on-year in the April-June period, thanks to robust sales in higher end home appliances, including TVs and washers, presumably this being attributed (or partly anyway) to the introduction of the company’s “Signature” line.
