* To pour 3.1 trln won to develop green products
* Will invest 2.3 trln won in green tech and facility
By Cho Meeyoung and Rhee So-eui
SEOUL, July 20 Samsung Electronics (005930.KS)
said on Monday it would invest 5.4 trillion won ($4.3 billion)
in green research and development and facilities to make the
world's largest memory chip maker a leading eco-friendly
company by 2013.
Of the total, 3.1 trillion won will be spent to develop
products which cause less damage to the environment, and the
remainder on energy-saving technologies and the environmental
improvement of manufacturing facilities, the company said in a
Samsung Electronics did not detail how it would finance the
initiatives but had around 5.3 trillion won in cash and cash
equivalent at end-March.
"This eco-management initiative will encompass all of our
global operations, supply chain, and the complete lifecycle of
Samsung products, and by achieving these goals we aim to lead
the way in tackling the environmental problems that are facing
our planet," Samsung Electronics' vice chairman and CEO
Yoon-woo Lee said.
Samsung's plan includes reducing greenhouse gas emissions
from manufacturing facilities by 50 percent, cutting total
indirect greenhouse gas emissions from all products by 84
million tons through 2013, and ensuring all of its products are
more environmentally friendly by increasing energy efficiency
through measures such as cutting standby power consumption.
Samsung's chip and LCD businesses, major sources of
greenhouse gas emissions, will invest "significant" sums to
reduce pollution, it said.
Shares in Samsung rose 3 percent on Monday, in line with a
2.7 percent rise in the KOSPI index .KS11
South Korea has made a major push on environmentally
friendly investment in recent weeks.
Earlier this month, the South Korean government said it
would invest 107 trillion won, or 2 percent of its annual GDP,
in environment-related industries over the next five years. It
also separately said that it aimed to raise 2 trillion won for
so-called "green industries" from the private sector.
HSBC estimates that of Asian government's stimulus packages
against the recent credit crunch, spending on green-related
investments will account for 20 percent, or $272 billion. That
means more than double the amount earmarked for green projects
in the Americas and five times bigger than
A survey last week showed over 80 percent of 105 South
Korean CEOs at major companies plan to invest in environmental
technologies and see them as a major business in the long-term.
By 2020, Samsung's competitor LG Electronics Inc
(066570.KS) is also aiming to lower its greenhouse gas emission
from the production process by 150,000 tonnes compared with its
2008 emission levels, and it will cut the gas emission caused
by using LG Electronics' products down by 30 million tonnes per
Hyundai Motor Co (005380.KS), South Korea's top carmaker
and the world's No.5 carmaker along with affiliate Kia Motors
Corp (000270.KS), in early July launched its first hybrid car
in the domestic market to satisfy a growing appetite for
fuel-saving vehicles and to improve its technology image.
(Editing by Lincoln Feast)