TOKYO and SEOUL, July 11, 2011 -- LG Electronics and Hitachi Plant Technologies will establish a joint venture in the water business that will combine LGE's strength in marketing, planning and manufacturing technology with the Hitachi Group's technological and engineering strengths in water treatment systems and information control systems.
The joint venture company, LG-Hitachi Water Solutions, is scheduled to be established in October 2011. LGE is providing 51% of the capital and Hitachi Plant Technologies 49%.
The new company will initially focus on manufacturing and sales of water treatment equipment, EPC(1) for water treatment systems and O&M(2) for water treatment facilities, centered mainly on wastewater treatment facilities and drinking water and sewage treatment facilities in Korea, and research and development of water treatment technology. The joint venture will also plan for future expansion in the water business in other countries.
LGE's water business, which started with domestic water purifiers, has recently extended into development of various types of membranes. The company intends to leverage these core technologies to achieve further expansion and development of a total water business.
The decision to enter into the joint venture reflects LGE's desire to make use of the Hitachi Group's extensive experience and know-how in order to enter growing water market.
The Hitachi Group seeks to further expand in the water industry, leveraging LGE's marketing strength and sales channels in Korea and its high-level standardization and mass manufacturing technology in water treatment equipment and systems.
The Hitachi Group positions its water business as an area of growth with potential for social innovation business. It is striving to expand its overall water business operations to reach sales of 200 billion yen in fiscal year 2015.