South Korea's top maker of home appliances, LG Electronics Inc said on Friday it planned to build a plant in Russia to meet rising demand there and to tap other European markets. "The company is seeking to set up a plant to make home appliances in Russia to efficiently meet rapidly growing demand there and utilise it as a production base for Europe in the medium and long-term," LG said in a filing to the Korea Exchange. The statement was released a day after the stock exchange asked the company to clarify market speculation about the plant.

LG provided no further details.

The Chosun Ilbo newspaper had reported on Thursday the plant would be completed by the first half of 2006 and would manufacture televisions, refrigerators, washing machines and audio equipment.

LG Electronics, which is also the world's biggest maker of air conditioners, has been aggressively exporting its white goods and handsets in the face of a saturated local electronics market.

Shares in LG were 1.86 percent lower to 73,900 won by 0233 GMT, versus a 0.13 percent rise in the wider market.

Copyright Reuters, 2005