LG Electronics buys local sewage treatment firm
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LG Electronics Inc. said on Sunday it bought Daewoo ENTEC, one of South Korea's leading sewage treatment service providers, and is looking at more mergers or acquisitions to become the world's leading water treatment company.
The No. 2 electronics giant in Korea said in a statement that the acquisition of Daewoo ENTEC, for an undisclosed amount, jibes with plans to begin operations this October in a joint venture, LG-Hitachi Water Solutions Co., with Hitachi Plant Technologies of Japan.
The global water treatment market was expected to reach $430 billion in sales this year, Young-ha Lee, CEO of LG Electronics Home Appliance Company, said in a statement.
"By 2020, LG aims to emerge as the world's leading water treatment company," Lee said. "In order to achieve this goal, we will continue to develop new technologies and methods in addition to looking at other M&A and partnership opportunities."
The LG statement said the acquisition enables LG to offer total water treatment solutions and bring together the firm's engineering, procurement, construction (EPC) and membrane production capabilities with Daewoo ENTEC's operation and maintenance services.
"With the market expected to grow at an annual rate of 5 percent due to increased pollution and the effects of climate change, we see the water treatment business as a crucial component of LG's future success," Lee said.
(Reporting by Sung-Won Shim; Editing by Ed Lane)
