LG Digital Appliance Division Seek to be Global Leader by 2007

Korea’s leading home appliance maker, LG Electronics, has set a 2007 goal to become a global leader in the appliance sector.

The Korea-based company plans to nudge past top competitors (Whirlpool and Electrolux) by 2007.

LG division president Lee Young-ha notes, “We will shift our strategy from trying to boost production volume to expanding our foothold in the high end of the market with premier items.”

LG is now the world’s third-largest household appliance producer by annual turnover, trailing market leader U.S.-based Whirlpool and Sweden-based Electrolux.

In 2004, Whirlpool recorded $13.2 billion in sales in digital appliances last year, followed by Electrolux with $11.9 billion and LG Electronics with $8.5 billion.

To gain the number one spot, LG sees innovation as crucial. In fact, innovation has led to a turnaround and sales--the company attributing innovations to its double-digit pace over the past few years from $5.6 billion in 2002 to $6.9 billion in 2003 and $8.5 billion last year.

With its global target in mind, LG has unveiled a new lineup of white goods, including improved Dios refrigerators, Tromm electric washers and Whisen air conditioners.

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