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[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Magna ePowertrain, a joint venture between LG Electronics and Canada's Magna International, is continuing its intensive investment in overseas plants such as China and Mexico.
According to the electronics industry on the 17th, LG Magna recently decided to invest 40.7 billion won in a production corporation in Nanjing, China. As the size of the project has grown due to the expansion work, the company has started to raise operating funds. It has been about a year and two months since it decided to invest 101 billion won in Nanjing last June.
In addition to the Nanjing plant, LG Magna also invested more than 130 billion won in the Mexican production corporation, which is currently building the plant, in November and December last year, and March and July this year. The plant plans to start operation next month and produce 1 million electric vehicle motors per year for North American customers.
The investment is financed from outside. It is a way for foreign corporations to borrow investment from financial institutions, but LG Magna will lower the procurement rate by providing debt guarantees. This is because it is difficult to increase capital due to the 51:49 stake structure with Magna International.
LG Magna is a subsidiary established in July 2021 when the Green Division, an electric vehicle power transmission unit (powertrain) division under LG Electronics' VS division, was physically divided. It mainly produces motors, inverters, in-vehicle chargers, and driving systems for electric vehicles. LG Electronics is focusing on three major axes: LG Magna, Infotainment (VS Business Headquarters), and Automotive Lighting System (ZKW).
LG Magna plans to establish a bridgehead for China, Europe, and the United States, the world's top three electric vehicle markets, through active overseas investment.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
