LG Electronics and appliances has opened a new line to manufacture washing machines in 10th of Ramadan City, creating for itself two production lines, with one being for televisions, the other for washing machines.
Large manufacturing companies are now adopting the strategy of manufacturing locally, especially after the Egyptian pound’s flotation. Samsung is considering establishing a factory for home appliances in a partnership with a local company. It has also expanded its Beni Suef factory for manufacturing screens, which exports 2.8 million of its products to over 36 countries across the world.
The investments of LG’s factory are estimated to be EGP 120m. The factory aims to produce 87,000 washing machines this year, including 31,000 to cover the local demand and 56,000 to be exported abroad.
LG’s investments in Egypt are estimated at $180.5m, including $174m for the production of TVs and $6.5m for the production of washing machines. The company has a workforce of 1,600 workers, total exports worth $250m, and local components in the manufacturing of TVs of 51%, in addition to 46% in washing machines, planned to be increased to 65%.
The opening of LG’s factory was attended by the Ministry of Industry and Trade, Tarek Kabil.
LG Electronics has been working in Egypt since 1990, where its first factory was opened in Ismailia before it moved its production operations to 10th of Ramadan City in 2014.
The company has injected new investments worth $80m to operate the new production line, increase its exports, and support all its activities in Egypt. Its annual production capacity is 300,000 washing machines.
LG plans to implement the latest global technologies in its production operations in Egypt, where the latest models of washing machines with unique technologies will be produced in Egypt.