Exit Not on the Cards
Korean companies in South Africa, which were damaged by arson and looting last week, have begun to count on the cost and bring the situation under control.
LG Electronics announced on July 19 that it will figure out the exact extent of the damage to its Durban TV plant before discussing its next steps.
The company estimated damage to production facilities and logistics warehouses at tens of millions of dollars. "We have confirmed that insurance will be able to cover our material damage," said a representative of LG Electronics.
Rumors of LG Electronics’ withdrawal from South Africa have been going around because all of its factory buildings were burned down. But the company says that withdrawal is not on the cards. LG Electronics has been producing TVs and monitors at the factory in Durban. Together with these products, it has been selling household appliances manufactured from other countries in South Africa. It needs to figure out ways to continue its business in South Africa, now that its production lines in this country have been destroyed.
Samsung Electronics' logistics warehouse in Kwazulu Natal, South Africa was also damaged by looters. The local government deployed military personnel and police to get the warehouse under control. Although detailed damage is not known, industry insiders say that Samsung Electronics must have also lost tens of millions of dollars in damage.