Member News — LG Purchases ZKW Automotive Lighting Company for $1.33 Billion
April 27th, 2018
ZKW enters a new dimension: On April 26, 2018, the sale of 100% of the shares in the ZKW Group by the sole owner Ulrich Mommert to LG Corporation and LG Electronics was signed. ZKW, the specialist for premium lighting and electronic systems, will partner with the LG Group, one of the largest technology companies in the world, with total revenues of approximately USD 150 billion in 2017.
In order to sustainably expand its position at the forefront of technological development, ZKW’s owner and management took the decision to enter into this forward-looking partnership with LG, securing ZKW’s long-term successful future.
The synergies expected from this strategic alliance will enable the new venture to take the leading role worldwide in automotive lighting technology as well as in autonomous driving.
Together with ZKW, the LG Group wants to become one of the top 10 automotive suppliers worldwide by 2025. ZKW’s product offering optimally complements LG’s existing product and technology portfolio.
With LG, ZKW gains access to valuable resources and key know-how in order to continue its successful growth course. ZKW benefits from LG’s extensive technology portfolio, thus sustainably improving its competitive position. LG has every confidence in the lighting specialist: ZKW will become the global competence center for automotive lighting within the LG Group.
Amongst the convincing arguments for the merger of LG and ZKW: the ability to develop pioneering products for automotive concepts of the future by combining LG’s extensive electronics expertise with ZKW’s leading expertise in automotive lighting. ZKW will thus be able to offer its customers particularly innovative and competitive new products in the future, also in the field of ADAS (Advanced Driver Assistance Systems).
“With this step, we are pleased to be able to expand ZKW’s successful corporate development in completely new dimensions,” said Oliver Schubert, CEO of the ZKW Group. “Together with LG, we have almost unlimited opportunities to shape the automotive market of tomorrow with intelligent lighting systems.”
LG’s automotive division will gain an important hub in Europe through the transaction, facilitating the cooperation with the leading European carmakers with which ZKW has had a successful partnership for years.
In the long-term the corporate headquarters of the ZKW Group will remain in Austria. Following the transaction, the ZKW Group will remain self-sufficient in its decisions and actions within the LG Group. The existing management team of the ZKW Group will continue to be responsible for the more than 9,000 employees worldwide. The existing production sites in Austria have been given a guarantee by LG for at least 5 years. ZKW expects the additional growth potential to create even more jobs in all locations.
Dr. Roland Wöss MMBA
ZKW Group GmbH
Rottenhauser Straße 8
+43 7416 505 – 0
Vice President Group Communication | Group Development