Matsushita, LG Enter AC Pact
Staff -- TWICE, 2/12/2001
OSAKA, JAPAN -Japan's Matsushita and Korea's LG Electronics have forged a home air conditioner partnership that calls for the sharing of parts, finished products and information on a global scale.
Matsushita provided LG with technical assistance in the room air conditioner field from 1984 though March 1999. Since then, the two manufacturers discussed the possibility of formalizing and expanding that relationship.
Under the terms of the newly forged pact, the companies will supply each other with key components and finished products produced at their global production sites.
This action is expected to result in approximately $870 billion in intercompany transactions within the current fiscal year (October 2000 through September 2001).
In addition, the air conditioner business groups within the two companies will exchange information in such areas as technology, materials and procurement, and production techniques.
Exchange meetings will be held several times a year when shared strategies will be discussed from a global perspective, the companies said.
LG markets air conditioners in the United States under the GoldStar brand. During last month's International Housewares Show, the manufacturer unveiled a new line under the eponymous LG moniker. Products in the line include air conditioners, microwave ovens, full-size refrigerators and washing machines.
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