LG Plant, Samsung Warehouse Looted
Social disorders in South Africa are spreading like wildfire after the detention of former president Jacob Zuma. Under the circumstances, Samsung Electronics and LG Electronics are suffering serious damage.
According to industry sources, thieves broke into Samsung’s warehouses in KwaZulu-Natal on July 13 and the extent of the damage is yet to be known. Earlier, LG’s plant in Durban was looted and burned down.
It is said that Samsung’s plant in Durban is still intact as it is close to an airport, a security facility. The plant is the only TV manufacturing plant in the sub-Saharan region of the continent.
The plant of LG was built at an investment of at least US$20 million. The LCD TV and monitor production capacity of the plant is approximately US$50 million a year. The looting and burning are likely to have caused a loss of tens of millions of dollars.
LG is yet to determine whether to relocate, withdraw or restore the plant. In Durban, a series of South Korean stores and businesses such as wig factories have been looted in addition to the plant.