LG Electronics' new CEO visits Austrian subsidiary ZKW Cho Joo-wan picks ZKW as its first foreign trip destination instead of CES
Translated by Kim So-in 공개 2021-12-24 07:51:36
이 기사는 2021년 12월 24일 07:49 thebell 에 표출된 기사입니다.
LG Electronics’ new chief executive officer (CEO) Cho Joo-wan has picked Austria as its first overseas trip destination instead of the world's largest consumer electronics and IT expo, the Consumer Electronics Show (CES), which is a similar move made by former CEO Koo Bon-joon a decade ago.Cho recently visited ZKW Group, LG Electronics’ automotive light maker subsidiary in Austria, along with Eun Seok-hyun, president of Vehicle component Solutions (VS) division and Kim Jin-young, former president of the division, industry sources said on Wednesday. Oliver Schubert and the management of ZKW reportedly met LG Electronics’ top management to discuss business growth strategies.
LG Electronics and its parent LG Corp acquired the Austrian automotive lighting and headlight systems provider in 2018 for more than 1.4 trillion won ($1.2 billion). After ZKW integrated the head lamp business of LG Electronics, it logged orders worth about 12 trillion won at the beginning of this year. ZWK recently completed its new logistics center and increased its investment in the future mobility business.
Former CEOs of LG Electronics mostly picked the CES as their first overseas trip destination. Former CEOs Cho Seong-jin and Kwon Bong-seok both attended the CES held in Las Vegas in January of the following year they were appointed as CEOs.
The only exception was former CEO Koo Bon-joon, who visited Tianjin and Shanghai, China, immediately after he was named as chief executive in the company’s year-end executive reshuffle in 2010. Back then, China was the strategic hub for the company’s overseas business, accounting for 25% of its overall sales. It operated 12 production units and six sales units there.
The fact that Cho chose to visit ZKW on his first foreign trip as CEO since taking office last month signifies the importance of the VS business. LG Group Chairman Koo Kwang-mo sees the VS business as key to the conglomerate's future growth, along with artificial intelligence and robots.
LG Electronics’ VS division recorded an operating loss of 879.3 billion won in the third quarter. Its revenue grew to the third largest, following Home Appliance and Air Solution division and home entertainment division, but failed to turn to a profit.
Performance of ZKW will be the key for Cho to achieve positive results in the VS division. LG Electronics’ VS business consists of three main pillars – infotainment, powertrains, and auto lighting systems. ZKW's orders account for 20% of the VS division’s total orders worth 60 billion won. ZKW has already received orders from global carmakers like BMW, VolksWagen, and Mercedes-Benz for the next three years and expects to set a new sales record next year. (Reporting by Hyun-ji Sohn)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- '재무개선' AJ네트웍스, 조달비용 '확' 낮췄다
- '9년만에 엑시트' 한앤코, 한온시스템 거래구조 살펴보니
- 한국타이어앤테크놀로지, 한온시스템 인수한다
- [수술대 오른 커넥트웨이브]2대주주 지분매입 나선 MBK, 주식교환 카드 꺼냈다
- [이사회 모니터]이재용 에이비프로바이오 대표, 바이오·반도체 신사업 '드라이브'
- 와이투솔루션, 주인 바뀌어도 '신약' 중심엔 美 합작사 '룩사'
- 아이티센, 부산디지털자산거래소 본격 출범
- 아이에스시, AI·데이터센터 수주 증가에 '날개'
- [이사회 모니터]서정학 IBK증권 대표, ESG위원회도 참여 '영향력 확대'
- SW클라우드 '10주년' 폴라리스오피스, “초격차 밸류업”