On Monday, LG Magna e-Powertrain, a joint venture between LG Electronics and Canadian car parts maker Magna International Inc., announced plans to build a 26,000-square-meter electric vehicle (EV) components factory in the northeastern Hungarian city of Miskolc by 2025.
Cheong Won-suk, CEO of LG Magna e-Powertrain, remarked that the new facility will help the company to meet the demands of the European market more effectively.
Miskolc, a city known for its heavy industry, has a well-developed distribution and transportation infrastructure, and several European automobile manufacturers have factories in the vicinity of the city, according to the company.
LG Magna e-Powertrain, which was established in July 2021, already has production bases in South Korea, China, and Mexico. In the first half of this year, the company completed the construction of a Mexican factory to produce inverters, motors, and on-board chargers for General Motors.
LG Electronics is set to take part in IAA Mobility 2023, an annual global mobility show that will be held in Munich on Tuesday, in an effort to increase its share of the rapidly growing EV parts market.
The EV component division of LG Electronics, which includes in-vehicle infotainment systems, e-powertrain, and headlamps, has seen an average annual growth of 30 percent since it was formed more than a decade ago.
In the second quarter of this year, the division reported a record-breaking revenue of 2.66 trillion won (US$2.01 billion). LG anticipates that the cumulative order backlog of its EV unit will reach 100 trillion won by the end of 2021 due to the explosive growth of electric vehicles.
Earlier this year, LG Electronics CEO Cho Joo-wan said his company will strive to provide customers with new in-vehicle experiences, as cars are no longer just a means of transportation but have become a multi-purpose tool.
jaeyeon.woo@yna.co.kr
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