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  • Updated
  • 29/08/2011

Acquisition a Key Part of LG’s Plan to Become

Global Leader in Water Treatment Market by 2020

SEOUL, Aug. 28, 2011 – LG Electronics (LG) today announced that it would acquire Daewoo ENTEC, a market leader in sewage treatment services. The acquisition is a part of LG’s expansion into the water treatment sector, where LG has been steadily increasing its acquisitions and investments, including the establishment of a joint venture, LG-Hitachi Water Solutions Co., to begin operations in October.


With the acquisition, LG will be able to offer a total water treatment solution. The acquisition brings together LG’s advanced capabilities in the engineering, procurement  and construction (EPC) and membrane production with Daewoo ENTEC’s market-leading operation and maintenance (O&M) services.


Since entering the water treatment sector in the second half of 2010, LG has undertaken turn-key EPC of medium- and large-size ultra-pure water treatment, pure water treatment and waste water treatment facilities for corporate customers. With Daewoo ENTEC’s strong track record and operational experience working with Korean municipalities, LG plans to expand its water treatment business in the government services sector and aggressively pursue new projects in the global market.


“The global water treatment market is a vast market with more than USD 430 billion (KRW 450 trillion) in sales expected for this year alone,” said Young-ha, Lee, CEO of LG Electronics Home Appliance Company. “With the market expected to grow at an annual rate of 5 percent due to increased pollution and the effects of climate change, we see the water treatment business as a crucial component of LG’s future success.”


In addition to providing total solution services, LG has been actively developing next-generation technologies in the water treatment sector. Last year, LG acquired a patent for its Green-Membrane Bio Reactor (G-MBR) technology.


“By 2020, LG aims to emerge as the world’s leading water treatment company,” Lee added. “In order to achieve this goal, we will continue to develop new technologies and methods in addition to looking at other M&A and partnership opportunities.”