Project description
and objectives:
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The proposed project involves construction and operation of a greenfield
production facility for digital electronic equipment (TVs and audio equipment)
and white goods (washing machines and refrigerators) with a total cost of $120
mln. The plant will be located in the Ruza region of Russia, 70 km from
Moscow. The Project also involves the construction of buildings and
infrastructure for several Korean component manufacturers, who will be located
on the Project site and produce various components to the Project. The Project
is aimed to benefit from the growing demand for digital electronic equipment
and durable home appliances and will bring Russian-built, international
quality modern products at an affordable price to Russian consumers.
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Transition impact:
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With its investment the Bank will mainly support the establishment of the
supplier base for the Project thus developing the domestic component
manufacturing industry.
The Project is also expected to generate a positive transition impact through
skills transfer to local employees, who will be trained to operate and
maintain modern production equipment, as well as will acquire skills and
know-how in the areas of management and quality control.
Another transition impact is the promotion of greater competition in the
consumer electronics and white goods sectors and demonstration effect
associated with successful operations of the Company. LG’s entry will foster
market efficiency, innovation and higher standards in the whole industry as
western quality products will become available at reasonable prices. This will
prompt domestic producers to adapt to more competitive market environment. The
Project will play a positive role in improving corporate governance and
business standards in the industry.
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The client:
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OOO LG Electronics RUS, the Client, is a Russian limited liability company and
the wholly owned subsidiary of LG Electronics Inc, Korea (the Sponsor). The
Sponsor Electronics will provide necessary technical, managerial and financial
support. LG Electronics is one of the leading producers of digital electronic
equipment, household appliances and mobile communication devices worldwide.
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EBRD finance:
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USD 10 million long term senior loan for a supplier park.
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Total project cost:
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USD 120 million.
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Environmental impact:
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The environmental due diligence is ongoing at present.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Financial director: Chang Moon-Suk
LG Electronics RUS,
86th km, Minskoe shosse,
Ruza district,
Dorohovo,
Moscow region
Russian Federation
Tel: +7 495 785 1313
Websites: http://ru.lge.com, http://www.lge.com
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EBRD contact:
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Pavel Bezmalenko, Operation Leader: bezmalep@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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