IR News

CDMA handset production line at Langchao LG Digital Mobile Communication Co., Ltd, a joint venture LGE has established in Ji Nan, Shandong Province, China.
-    Inauguration celebration held for CDMA handset production base, Langchao LG Digital Mobile Communication Co., Ltd. in city of Ji Nan, Shandong Province
-    Annual production volume of 1.5 million units...LGE is the first Korean company to have a local production plant in China
-    To make 6 to 7 models of CDMA handsets with UIM card...to focus on enhancing LG image as the high-end brand with color phones and cdma2000 1x phones
-    LGE to position itself as a major handset supplier in China's CDMA handset market with its own fully localized production, sales, R&D, and customer service network

LG Electronics is the first in Korea to establish a joint venture for CDMA handset production in China to have a fully localized production base in this fast growing market.

LGE recently announced that it held the inauguration ceremony for Langchao LG Digital Mobile Communication Co., Ltd., a CDMA handset joint venture, in the City of Ji Nan, Shandong Province. Along with Vice Chairman Yong-ak Noh of LGE China Holding Company, representatives of Shandong province and Electronic Information Industry Corporation along with local business leaders such as Head of Han Yu Qun of Shandong Province Commerce Department, Chairman Sun Pi Shu of Langchao Group attended the ceremony.

LGE plans to invest a total US$15 million this year with additional US$4.5 million in the near future in the joint venture to build a fully localized CDMA handset R&D, production/sales, and customer service network as a part of its efforts to expand its CDMA handset business in China.

LGE's CDMA handsets with Wireless Application Protocol (WAP) support and User Identity Module (UIM) card already being produced at the joint venture are enjoying a favorable response from Chinese consumers. LGE plans to add 6 to 7 new models to its product line-up in the near future to introduce handsets meeting local customer needs and build LG as the high-end brand in the CDMA handset market in China.

At the same time, to diversify its product line-up with folder and dual folder types and in preparation of the coming color handset and cdma2000 1x handset markets, LGE also plans to focus its efforts in R&D for these areas.

China's handset market is expected to record robust growth over 20% on a year on year basis for the next decade. It will grow as the world's largest mobile market with the number of subscribers reaching 260 million (GSM and CDMA) by 2005. The Chinese government plans to complete construction of its CDMA infrastructure in 330 cities by the end of 2002.