[News Article] LG Energy Solution, suppliers seek to create sustainable value for clients
LG Energy Solution,
suppliers seek to create sustainable value for clients
By Heo Yu-jeong, The
Korea Herald - South Korea’s top battery maker LG Energy Solution is committed
to a management policy focused on sustainable growth with its partner firms,
driven by a spirit of cooperation and mutual growth. The company said it
aims to bolster the competitiveness of its suppliers, even amid management
uncertainties while maintaining its leadership position in the market. Under the banner of
mutual growth, the company has implemented support programs encompassing both
short-term goals such as cost competitiveness and long-term objectives like
localization of the value chain and technology development. These quality and
productivity support programs are now accessible to both domestic and
international partners. To ease the
financial burden on suppliers, LG Energy Solution has introduced a financial
support program, called Investment Funding for Mutual Growth. The program,
worth 150 billion won ($112 million), has assisted partners in securing
low-interest loans based on the firm's deposits in financial institutions since
2020. The company has also established a price indexation system for
interlocking contractors to adapt to fluctuations in raw material prices. The commitment to
mutual growth is especially evident during holidays, with the company
significantly boosting cash flow to partners by making payments before the due
date. This alleviates the substantial cash outflows suppliers face,
particularly for raw materials and incentives. LG Energy Solution
also plans to recommend well-performing projects to the Korea Credit Guarantee
Fund, aiming to provide partners involved in these projects with a guarantee of
obligation. Beyond financial
support, the company actively promotes a fair trade culture. Internal
committees, such as the Internal Transaction Committee and the autonomous
Dispute Resolution Committee, ensure the legal compliance of subcontracting
transactions and seek internal resolutions to controversies with partners. Emphasizing the
importance of co-development, LG Energy Solution is also investing in its
partners' growth opportunities. It is set to establish a business partnership
with educational institutions to offer free online courses -- such as business,
IT, language, culture, leadership, and sexual harassment compliance training.
Additionally, a partners-only recruitment page on hiring platforms is in the
works. "Guided by the
win-win philosophy, we will extend cooperation for improved qualities,
technologies, and productivity based on mutual trust. Our goal is to maintain
leadership in the field of next-generation batteries," said an LG Energy
Solution. Source: https://www.koreaherald.com/view.php?ud=20240221050608
2024.02.22
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