A South Korean multinational electronics company, LG Electronics, is looking into possibilities of establishing an assembly plant in Tanzania to tap into rising middle class consumers and reach the East African region.
LG Electronics General Manager for East Africa, Moses Marji said at the ongoing 42th Dar es Salaam International Trade Fair that Tanzania was an important growing market for the company and its strategic location facilitate reaching the East African regional market.
"There are various issues that we have to take into consideration before coming up with a decision to invest because as of now the country is going through a transition including change in laws and other key elements in the investment sector, therefore we will have our decision based on all those issues in the end," he said.
He said what matters most is the quality of products and the intended factory to be established will bring into reality the idea to use home made products. It was crucial to establish the plant in the country so that the customers could feel that they use their own products, he said.
The electronics multinational which posted biggestever revenue in 2017, despite falling smartphone sales, is currently participating in the ongoing 42th Dar es Salaam International Trade Fair where it has introduced new products that have entered the market from their fleet.
The South Korea's tech behemoth, posted its biggest-ever revenue in history in 2017 due mainly to strong TV sales. Revenue reached record high $57.9 billion in 2017 for the first time in the company's 60-year history, according to Xinhua news agency.
The mobile communications division, which makes smartphones, posted an operating loss of $201 million in the fourth quarter on high marketing costs and higher component prices.