Samsung Group predicts 20% rise in China sales

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Samsung Group predicts 20% rise in China sales

Samsung Group, whose units include Asia’s largest chipmaker and the world’s largest maker of liquid-crystal displays, forecast sales in China may increase 20 percent this year.
Revenue from the Greater China region, including Hong Kong and Taiwan, may climb to $35.7 billion in 2007 from $29.7 billion last year, Korea’s largest industrial group said yesterday in an e-mailed statement.
Samsung also plans to increase investments in China 18 percent to $6 billion this year, according to the statement, which didn’t break down revenue or spending figures.
Retail sales in China, the world’s fastest growing major economy, during the first three months of 2007 rose 15 percent after the Chinese government cut taxes and raised the minimum wage to encourage consumer spending.
And LG Electronics Inc. said yesterday that it plans to start mass production of large-sized plasma display panels (PDP) in China next month in order to tap one of the world’s largest markets.
“We have completed development of related technologies for PDP module production there,” an LG Electronics official said.
“Based on existing facilities in Nanjing, we will start production of the 32-inch PDP modules next month.”
Market observers see the move as part of LG’s ongoing efforts to revamp its strategies for the loss-making PDP business.
The 32-inch PDP modules are regarded as being more competitive in price than their liquid crystal display counterparts.
LG Electronics recently reported that it will halt production at one of its plasma display panel lines here in Korea in a bid to lower costs.
The Korean electronics giant posted a net loss of 122.6 billion won ($132.5 million) in the first quarter of this year amid sluggish display sales.
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