LG Pours another $550 Million into Hai Phong

LG Innotek has won a license to invest $550 million in a camera module plant in northern Vietnam.


         LG Innotek will build a $550-million camera module in Hai Phong city. Photo: i-n.co.kr

LG Innotek Co. Ltd., the electronic components arm of South Korea’s LG Group, has received a license for its $550-million camera module factory in Vietnam’s northern port city of Hai Phong.

The investment of the plant far exceeds the $230 million reported by The Korea Herald in late July.

The plant will be built on an area of 10 hectares in Trang Due Industrial Park in the Dinh Vu – Cat Hai economic zone, the Hai Phong Economic Zone Authority said in a filing on its website.

The facility is scheduled to start operation in the fourth quarter of 2017. Once operational, the plant will churn out 30 million camera modules per month, all of which will be exported.

This will be the third project invested by LG Group in Hai Phong. Its first project, a $1.5-billion complex that produces household appliances, came into operation in March 2015.

The construction of a $1.5 billion OLED screen plant by LG Display started in May this year.

With the camera module plant, LG Group has invested a combined $3.55 billion in Hai Phong, making the city one of the conglomerate’s new global manufacturing hubs.

Earlier news report said that Apple had requested LG Innotek, which currently produces camera modules at its plants in Gumi and Gwangju, both in Korea, and Yantai, China, to construct a camera module plant in Vietnam to reduce supply prices.

Tuan Minh / BizLIVE