LG plans $1 bln investment in Poland

South Korean electronics giant LG and its Dutch partner Philips will build an ultra-modern liquid crystal (LCD) monitor production facility in European Union newcomer Poland.

Valued upwards of 800 mln euro (999 mln dollars), the investment will be a first in Europe both in terms of technology and sheer scale, according to the Gazeta Wyborcza daily.

The Koreans have chosen the small south-western Polish town of Biskupice Podgorne, near the city of Wroclaw and both the German and Czech borders.

LG intends to build two factories. Production at the first, valued at 429 mln euro (535.8 mln dollars) will begin in early 2007. The plant is expected to directly generate some 2,800 jobs and an additional 10,000 jobs indirectly.

The plants will produce panoramic LCD TV monitors as well as flat screen LCD computer monitors. Initial annual production of TVs will total 3 mln units with plans for 11 units by 2011. All are pegged for export.

LG Electronics also plans to build a consumer durables factory worth 369 mln zloty (117.7 mln dollars) that will generate an additional 3,200 jobs in the same locality.

LG Philips will receive 99 mln zloty (31.6 mln dollars) in tax breaks from the Polish government between 2006-11, while LG Electronics will enjoy some 48 mln zloty (15.3 mln dollars) in investment incentives until 2016.

Poland already produces a quarter of European Union TV sets. (dpa)