ZKW Group

The Austrian company ZKW Group develops LED headlights and lighting modules which are used in cars of the largest car makers, including General Motors, BMW, Mercedes-Benz and Audi. Manufacturing enterprises of the company are located in the Czech Republic, Slovakia, India, China, the USA and Mexico. Total number of staff of ZKW is about 5900 people (for the end of April, 2018).

History

2018: LG buys ZKW for $1.3 billion

On April 26, 2018 announced LG Electroncis purchase of ZKW Group for 1.4 trillion wons ($1.3 billion). This acquisition became the largest in the history of the South Korean producer of consumer electronics.

Under the terms of the agreement, 70% of the stocks ZKW will pass LG Electroncis, and the remained 30% — to LG Corporation holding into which LG Electroncis enters. The guide of the producer of automobile lighting systems will remain on the places, and jobs within five years are guaranteed to the staff of ZKW working in Austria.

Announced LG Electronics the largest purchase in the history - for $1.3 billion absorbs the producer of products for automobile illumination of ZKW

LG reported that business in the field of automobile lighting is perceived by the company the new driver of growth in the market of component parts for vehicles. Consolidation of technologies for creation of "different innovation products" for automobile light is planned. In particular, the companies intend to create the intelligent systems of lighting capable to project different information on a roadbed.

The analyst of Daishin Securities of Park Gang-ho believes that purchase of ZKW will help LG to cut down in the long term expenses and time of an output of products for the automobile market that is very important, considering big barriers to entry into this business and need of cooperation with car makers. In three years of sale of automobile components at LG almost doubled and made 3.38 trillion wons ($3.1 billion) in 2017.^[1]

Notes