Once the procedure to establish the joint venture is completed, the LG Group company will set out to build a production facility within the city’s economic and technological development zone and begin mass-production by the end of 2015. (image:武铁辆玻/flickr)
SEOUL, July 3 (Korea Bizwire) – LG Chem will build an electric vehicle battery plant in China’s Nanjing, the third plant after Cheongju (Korea) and Holland (Michigan, U.S.).
The company held a signing ceremony at its LG Twin Tower in Yoido, Seoul, on July 2 with high-ranking officials from the Nanjing city government. The ceremony was attended by Nanjing city deputy mayor LuoQun, LG Chem battery business division head Kwon Young-soo, and others.
The company held a signing ceremony at its LG Twin Tower in Yoido, Seoul, on July 2 with high-ranking officials from the Nanjing city government.(image:LG Chem)
In order to build the battery plant, LG Chem will establish a joint venture until this August in partnership with two Chinese state-run enterprises under the Nanjing city government, Nanjing Zijin Technology Incubation Special Park Construction Development Co. and Nanjing New Industrial Investment Group Ltd., and begin investing in the plant construction project.
The joint venture will be created with the 50-percent investment from LG Chem and the remaining 50 percent from the two local companies.
Once the procedure to establish the joint venture is completed, the LG Group company will set out to build a production facility within the city’s economic and technological development zone and begin mass-production by the end of 2015.
In the initial phase of the construction, the plant will supply 100,000 electric car batteries a year. In order to respond quickly to the needs of local customers, the plant will be equipped with producing cells, modules, and packs.
The company figures that the newly built plant will be able to earn more than 1 trillion won in sales revenue by 2020. Already, it has secured orders from major car makers in China such as Shanghai Automotive, FAW Group, Chang’an Motors, and Qoros Auto by the several hundred thousands of batteries.
An LG Chem official said that the main reason for locating the battery production plant in Nanjing has to do with the wholehearted support from the Nanjing city government, as well as the city’s geographical advantage of being in the center of major electric car makers.
In addition, Nanjing has long been home to several LG companies including LG Electronics, LG Display, and the small battery production plant of LG Chem.
Written by Sean Chung (schung10@koreabizwire.com)
Business (Follow us @Biznews_Korea)
