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LG Electronics may outsource mobile phone production

South Korea's LG Electronics Inc. Tuesday said it may outsource part of its production of mobile phones to a contract electronics maker to cut costs and meet rising demand.

The world's fourth-largest handset maker by shipments is reviewing the possibility of entering talks with some contract manufacturers, said LG Electronics spokesman Choi Jun-hyuk.

"For now, we can meet rising demand by expanding capacity at our existing plants, but if demands far exceed our output capacity, we may have to think about outsourcing," he said.

LG is looking to leaders in the original equipment manufacturer industry such as Hong Kong-listed contract mobile phone maker Foxconn International Holdings Ltd. and Flextronics International Ltd. of the U.S., but isn't yet in talks with any of them, Choi said.

LG now operates six handset plants globally, including one in Korea.

The company has said it expects to sell more than 100 million handsets this year, compared with 80.5 million units in 2007.

Источник: Total Telecom

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