LG Electronics, Hitachi to set up JV for water treatment

SEOUL, July 11 (Yonhap) -- LG Electronics Co., South Korea's No. 2 TV maker, said Monday that it will set up a joint venture for a water treatment business with Hitachi Plant Technologies of Japan.
The joint venture, dubbed LG-Hitachi Water Solutions Co., will be set up in South Korea in October, LG Electronics said. The South Korean home appliance maker said it will hold a 51 percent stake.
LG Electronics, also the world's No. 3 handset maker, is diversifying its business portfolio into new areas such as healthcare as its existing businesses are struggling due to increased competition.
The joint venture will become a top player in the rapidly growing water treatment industry on the back of LG Electronics' technology and Hitachi's expertise, the South Korean firm said in a statement.
Last year, LG Electronics said it will invest more than 500 billion won (US$471 million) over the next 10 years and aim to generate sales of 7 trillion won.
Local conglomerates such as SK and Doosan are also rushing to tap the water treatment business.
sam@yna.co.kr