LG Innotek Secures $200M Loan, Expands Vietnam Camera Module Production
LG Innotek, a South Korean tech giant, has secured a significant $200 million sustainability-linked loan from the World Bank's IFC. This is a first for a South Korean company. The funds will support LG Innotek's expansion in Vietnam, specifically in the city of Haiphong.
LG Innotek Vietnam Hai Phong's first quarter of 2025 saw impressive revenue of KRW1.15 trillion ($834 million) and a profit of KRW66.9 billion ($48.27 million). The company plans to build a third plant (V3) in Haiphong, doubling its camera module capacity in Vietnam. This expansion aligns with LG Innotek's strategy to shift 70-80% of its total camera module production to Vietnam, improving cost competitiveness.
The V3 plant, spanning about 150,000 square meters, has already begun operations. LG Innotek aims to make Vietnam a hub for its camera module production within the next two to three years. This expansion is part of LG Innotek's pledge to invest $1 billion in Vietnam by the end of 2025. LG's total investment in Vietnam, mostly in Haiphong, has already reached $8.24 billion as of April 2024.
The $200 million loan from the World Bank's IFC will support LG Innotek's move up the value chain and increase exports of higher value-added products. LG Innotek's commitment to renewable energy, with nearly 60% of its global electricity consumption already from renewable sources in 2024, is also commendable. The company's expansion in Vietnam is set to boost its production capacity and competitiveness in the global market.
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