Project Description
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.
Transition Impact
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.
The Client
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.
EBRD Finance
USD 10 million long term senior loan for a supplier park.
Project Cost
USD 120 million.
Environmental Impact
The environmental due diligence is ongoing at present.
Technical Cooperation
None.
Company Contact
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
Business opportunities
For business opportunities or procurement, contact the client company.
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Text of the PIP
Project Complaint Mechanism (PCM)
The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.
Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.
