With plans to invest US$ 400 million in a decade, LG Electronics recently announced that it will enter the water treatment market to help combat global water supply issues.
The move which would see it scale to one of the world’s top ten players in water treatment business by 2020 is timely as it largely aims to better the methods of the humanity having a more sustainable environment.
LG’s investment over the 10 year period is projected to generate US$ 7 billion in revenue by 2020. Much of the investment will go toward acquiring the right technology and building up research and development in this field.
“Water affects every aspect of our lives, yet almost one billion people around the world don’t have clean drinking water and more than 2.5 billion still lack the most basic sanitation,” said Mr. George Mudhune, LGE Regional Marketing Manager, East Africa. He noted that LG hopes to make a small but significant contribution in alleviating the global problem that touch on water by finding solutions through innovation and technology.
LG will concentrate its Research & Development on developing an advanced membrane filtration system, its core technology and key component of water treatment solutions. It will in this regard expand its internal capabilities with the additional hiring of membrane filtration experts and process engineers. The company will also be pursuing various types of partnerships, mergers and acquisitions as part of its strategy to expand quickly.
The starting point said Mudhune will be to embark on industrial water treatment and expand its coverage into sewage and drinking water treatment. The company eventually plans to enter the business of water treatment engineering and procurement as well as operation and maintenance across the municipal sector.
“The global water crisis isn’t going to go away by itself – governments, citizens and corporations will all have to work closely together,” said Mr. Mudhune. “The water business has been growing by an annual rate of 15 percent so there’s an incentive for companies to invest in finding solutions, but beyond the business, I think this is one problem where LG’s experience and commitment to finding sustainable solutions will be a huge advantage.”
