Contributor’s Note: This is an ongoing column in water sustainability, consumption and management issues. The rationale is simple: water is a more urgent priority for corporate social responsibility programs and becoming more so every day.
You may know LG Electronics primarily as a consumer electronics and mobile phone player, but now the company is aiming to dominate another market: water treatment technologies.
One piece of that puzzle is the acquisition of Daewoo ENTEC, which offers sewer treatment services. LG plans to buy that company for an undisclosed sum. The operation will become part of a joint venture, LG-Hitachi Water Solutions, that is set to start up in October.
LG got into the water treatment business in the second half of 2010, and it has been focusing on constructing water treatment facilities for commercial-sector customers. The Daewoo ENTEC acquisition will immerse Seoul, Korea-based LG into operation and maintenance services.
LG CEO Young-ha Lee estimates the market for water treatment services at a mind-boggling $430 billion annually. He said:
"With the market expected to grow at an annual rate of 5 percent due to increased pollution and the effects of climate change, we see the water treatment business as a crucial component of LG's future success."
LG is developing many water technologies internally, including its patented Green-Membrane Bio Reactor technology, which removes substances from water. The company aims to become the global leader in water treatment by 2020. In its press release about the Daewoo ENTEC acquisition, LG suggests that future acquisitions are on the table.
Past Water Wednesday posts:
This post was originally published on Smartplanet.com