LG Spins Off Construction Related Businesses

Englewood, Cliffs, NJ, July 1, 2009--LG Chem, Ltd, has been spun off from the parent company to create LG Hausys America Inc., with the newly incorporated company representing its resilient floor covering business and other areas.

LG Hausys Floors, the resilient floor covering division, will join with the company’s window frame, decorative film, and countertop divisions, all under the new LG Hausys brand. The internal reorganization will not affect LG’s day-to-day market strategies for its resilient floor covering products.

As part of the internal realignment, LG Hausys Floors will relocate its U.S. headquarters from Englewood Cliffs to Atlanta on Aug. 3.

LG Hausys Floors will share the new Atlanta location with all material divisions that serve North America. The company said the move will allow it to cut costs and provide synergy among the materials groups.

In Atlanta, LG Hausys America’s material divisions will report to one North American president to sharpen focus on the new brand, while sharing the costs of human resources, information technology, facilities management and other expenses.

“It’s more of an internal LG spin-off,” said executive vice president David Thoresen, in charge of the LG Hausys Floors division in North America.

“LG looked at its various businesses and decided we would be better served on our own. There just wasn’t a lot of synergy with the chemical side of the business. With one president in North America overlooking our materials division it should allow us to focus much more on the construction industry. It won’t change how we go to market, but we will be able to consolidate a lot of our operating costs. We’re moving into a beautiful new facility in Atlanta together. It’s a great move for us and we’re very excited about the future.”