Tuesday, July 16, 2024

LG plans $39.5 bn investment to hit $79 bn in sales by 2030

LG Electronics aims to spend $39.5 billion in research and development, facility and strategic investment as it aims to reach $79 billion in sales by 2030, up from $51.4 billion last year.

By 2030, the company aims to double sales for its heating, ventilation and air conditioning (HVAC) business and become a global top-tier comprehensive air conditioning company.

LG Electronics (LG) declared its vision to transform from its current position as a top global home appliance brand to a “smart life solution company” that can connect and expand customers’ diverse experiences while driving for global annual revenues of KRW 100 trillion by 2030.

“LG will continue to pursue its bold vision to transform and leap forward as a smart life solution company that connects and expands customers’ various spaces and experiences, rather than resting on its current position as the best home appliance brand that provides quality products,” CEO William Cho said in a statement.

“We will establish a brand-new LG by reinventing the way we work and communicate toward this goal,” he added.

To start, as of the end of this year, LG’s TV business is projected to make a great transformation based on its webOS operating system, which powers more than 200 million smart TVs around the world.

The company will invest more than KRW 1 trillion over five years to strengthen the content competitiveness and drive growth of LG Channels – an advertising-based free broadcast platform.

Over the past two years, considering market conditions and evolving business model strategies, the company boldly exited its mobile phone and solar panel businesses and, instead, focused resources on future high-growth areas.

In the future, LG plans to accelerate future development by selecting and concentrating on new businesses that are expected to have similarly high growth potential.

The company is also continuing its strategic investment in digital healthcare.

“LG’s EV charging business has an aim to provide an integrated solution that encompasses the control area, not just the sales of chargers,” it said.

Cho said LG will focus on the transition to the platform-based service business model, acceleration of B2B areas and procurement of new growth engines based on competitive edge as three pillars to focus on customer experience.

By 2030, the proportion of these three pillars in sales and operating profit is expected to increase to more than 50 per cent.



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