LG Electronics exported 700,000 TV screens worth $150m in 2015 which were manufactured in 10th of Ramadan, managing director of LG Electronics in Egypt Don Kwack said.
Kwack revealed the company’s intention to manufacture new screens with OLED technology in its factories locally, reflecting the company’s confidence in the Egyptian market. Kwack believes that the Egyptian market is promising and enjoys diversity and good growth rates.
The new TV screen with OLED technology has better colour accuracy, an 80% slimmer screen and 30% lighter weight compared to LED screens.
Kwack believes that the US dollar crisis in Egypt is temporary, but at the same time it has negatively affected the company’s performance and the majority of foreign companies operating in Egypt. He revealed a 15% decline in the company’s profits as a result of the foreign currency shortage.
Since the 25 January Revolution, Egypt has suffered from a difficulty in providing US dollars as the foreign exchange reserves fell from $35bn in 2011 to $16.5bn as of January 2016. Upon the low availability of the US dollar and its high exchange rate on the informal market, the Central Bank of Egypt (CBE) raised the dollar exchange rate to EGP 8.87 last week.
Kwack revealed LG’s plan to manufacture some electrical appliances in Egypt, on top of which are washing machines and air conditioners. The Egyptian Customs Authority raised tariffs on some food products and electrical appliances such as fans, refrigerators, air conditioners and heaters, irons, ovens, cassette and CD players, furniture, and video games. The tariff increase reached 40%, which led to an increase in the majority of these product’s prices.