LG Electronics announced on Tuesday, their new long term business plan that outlined planned cost cutting initiatives, the growth of existing businesses and pursuit of new sectors for the company on a global scale.

As Current.com.au reported earlier in the week, LG is implementing various measures to combat the global recession, one area in which LG focused on was the inclusion of a “Crisis War Room’ late in 2008.

The purpose of this and various other measures was to implement LG’s “aggressive business plans” in order to reduce expenses.

In the early stages of this announcement, it was unclear exactly how this would affect the Australian arm of the business locally.

Vice chairman and CEO of LG Electronics, Yong Nam, has just confirmed that these initiatives will affect Australia, but it is still unknown how hard it will actually hit, and in what capacity.

“In order to maintain product leadership and increase market competitiveness, LG Electronics will employ cost cutting initiatives to reduce supplier costs and general expenses. These initiatives will have an impact on LGE on a global scale and will therefore impact Australia,” he said.

But Nam has expressed that these measures are necessary for the future success of the company and quotes “a reduction in expenses, improved cash flow and profit from the year end, will help fund the increased investment in R&D, marketing, branding and design planned for 2009”.