Samsung Elec to invest $100 mln to build India plant

SEOUL (Reuters) - South Korea's Samsung Electronics Co. Ltd. said on Friday it would invest $100 million to build a television and monitor plant in India to meet fast-growing demand for consumer electronics products there.
Samsung signed a memorandum of understanding with the government of Tamil Nadu to set up its second Indian manufacturing complex in Sriperumbudur, the firm said in a filing with the Korea Exchange.
Samsung plans to commence construction in January 2007 and start commercial operation in August the same year, with the investment to be made over the next five years starting 2007.
The plant will first produce colour televisions, monitors, refrigerators, air conditioners, washing machines, and later also make liquid crystal display (LCD) televisions and LCD monitors.
"We are looking at the new facilities becoming a global manufacturing hub for Samsung and will be manufacturing products at this facility not only for the domestic market but for the export markets as well," S.H. Oh, Samsung's president of its Southwest Asia headquarters, said in a statement.
Samsung said it expects to hire 2,500 people for the project.
Samsung, which has another consumer electronics plant in Noida, targets sales of $5.5 billion in the country for 2010.
The South Korean company is betting on a market that is set to grow 12-15 percent a year from low base levels, due to rising salaries and soaring aspirations of the 270 million strong middle class.
Shares in Samsung closed 0.32 percent lower at 629,000 won, in line with the wider market's 0.27 percent fall.

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