LG vows to invest more in Austrian affiliate ZKW

LG Electronics said Friday it will continue to invest more in Austrian automotive lighting system firm ZKW Group, which was purchased by the South Korean company earlier this year.

In April, LG Electronics bought a 70 percent stake in ZKW, with the holding firm LG Corp. purchasing a 30 percent stake. The 1.4 trillion-won ($1.24 billion) deal marked the biggest merger project carried out by LG to date.

The Korean tech giant said LG Vice Chairman and CEO Jo Seong-jin visited the headquarters of ZKW, located in Wieselburg, Austria, earlier this week, sharing the company’s vision with the new sister firm.

Jo stressed ZKW will play a great role in LG’s future projects and promised to give leeway to the Austrian-based firm’s management based on trust.

In April, LG said it will retain the current management at ZKW even after the acquisition and guarantee the employment of its Austria-based staff for the next five years. LG also vowed to continue making investments in ZKW.

ZKW, meanwhile, announced its new logo to mark a new start after becoming a member of the LG family.

The Austrian firm was established in 1938 and is specialized in the production of premium automobile lights.

LG Electronics plans to increase investments in ZKW to bolster its automotive parts business.

Yonhap