Two banks to finance USD 4 mn LCs for LG new washers production line

LG inked an agreement with two unnamed state-owned banks that will see it receive a monthly USD 4 mn in letters of credit, an unnamed source tells Al Borsa. The LCs will be used to cover operational costs for LG’s new washing machines production line and purchase external components. Locally-manufactured components are expected to make up 65% of total production input in the coming period, up from a current 40%. The company also plans to produce 600k machines next year up from 300k this year, as LG is looking to increase exports to Gulf and COMESA countries, and hopes to make its way into new markets, the source adds.