SOUTH Korean industrial conglomerate LG is today expected to announce plans to build a billion sterling electronics complex in south Wales. IDA Ireland had hoped to win part of the investment but sources in the organisation say it had been clear for some time that it would not succeed.
Two factories, a semiconductor production facility and a consumer electronics plant producing television parts, will create 6,100 jobs and amount to the largest inward investment ever made in Europe. The project, which was due to be confirmed in Seoul today by officials of LG, formerly known as Lucky Goldstar, and Welsh Secretary, Mr William Hague, will underline, Britain's position as a leading location for foreign investment in the EU.
IDA Ireland had bid for the semiconductor part of the operation, but LG has decided to locate it alongside a new consumer products plant. Ireland has not got the necessary infrastructure - such as components suppliers - to support major consumer products operations and it is understood that IDA Ireland did not bid for this aspect of the project.
The British government will be hoping this economic success will boost flagging Conservative political fortunes in Wales and elsewhere. The complex will be built at Imperial Park in Newport, a site near the M4 motorway.
A chip factory, to be built by LG Semiconductor, will produce next-generation 64 megabit and 256 megabit computer memory chips, as well as 1,700 jobs.
The sister factory, run by LG Electronics, will start by making television components but move on later to make wide-screen televisions. It will expand employment steadily up to a proposed peak of 4,400.
The Welsh Office and the Welsh Development Agency's proposed offer is understood to be worth up to £200 million, including funds for training and site preparation.
This is the equivalent of about £30,000 ajob, considerably more than given to many other inward investors.
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