* Loewe to keep main production lines in Germany
* Previously planned to shift more production abroad
* Co-CEO says Loewe TVs to remain luxury goods
* Targets Chinese demand for high-end products
KRONACH, Germany, Aug 22 German TV maker Loewe,
which became insolvent last year and was bought by an investment
group five months ago, has binned plans to shift production
abroad and decided to continue making most of its models at
"For our main production lines we are sticking with 'Made in
Germany'," part-owner and co-Chief Executive Mark Huesges told
Reuters in an interview at Loewe's headquarters in the Bavarian
town of Kronach.
Loewe, started by brothers Siegmund and David Ludwig Loewe
in 1923, sought protection from creditors in July 2013 and filed
for insolvency in October after a strategy to combat the
economic downturn by focusing on premium customers backfired.
Consumers in Europe, where Loewe generates 97 percent of its
sales, had shied away from paying between 1,000 euros and 5,000
euros ($1,300-$6,600) for flat-screen TV sets, as Samsung
and LG Electronics among other rivals
presented far cheaper mass-market models.
Following its insolvency, Loewe planned to shift production
of many models abroad to cut costs and allow it to sell cheaper
TVs. But Munich-based investment group Stargate Capital, which
bought the firm for an undisclosed sum - described only as "high
single-digit million euros" - in March, has now changed tack.
"There will be no cheap Loewe," Huesges said. "A Loewe
should be a luxury item, but one that you can still afford."
Loewe has struck a partnership with Chinese technology
supplier Hisense and now sells TVs via four
retailers in China to tap demand for luxury goods there.
"Especially in China there is a desire for quality, which
customers there value," Huesges said, adding Loewe aimed to
increase the number of outlets it sells through in China to
seven by the end of the year.
Keeping production in Kronach also means that fewer
additional jobs may be cut than planned, he said. Loewe has
already reduced its workforce to just over 400 from more than
($1 = 0.7535 euro)
(Reporting by Jens Hack; Writing by Maria Sheahan; Editing by