The No. 2 electronics giant in Korea said inside a statement that the acquisition of Daewoo ENTEC, for an undisclosed amount, jibes with plans to start operations this October in a joint venture, LG-Hitachi Water Solutions Co., along with Hitachi Plant Technologies of Japan.
The global water treatment market was likely to reach $430 billion in sales this year, Young-ha Lee, CEO of LG Consumer electronics Home Appliance Company, said in a statement.
"By 2020, LG aims to emerge since the world's leading water treatment company, " Lee said. "In order to accomplish this goal, we will continue to develop new technologies and methods in addition to taking a look at other M&A and partnership opportunities. "
The LG statement said the acquisition enables LG to provide total water treatment solutions and bring together the firm's engineering, procurement, building (EPC) and membrane production capabilities with Daewoo ENTEC's operation and maintenance providers.
"With the market expected to grow at an annual rate of 5 percent because of increased pollution and the effects of climate change, we see the water treatment business like a crucial component of LG's future success, " Lee said.