UPDATE 1-LG Elec aims to boost appliance sales in Europe

SEOUL, Sept 2 - South Korea's LG Electronics Inc <066570.KS> aims to boost its appliance sales in Europe by 10 percent annually in the coming years and become the global No. 1 in refrigerators and washing machines by 2012.

LG, which competes with bigger rivals Whirlpool Corp of the United States and Electrolux of Sweden, also said on Wednesday it planned to increase its European market share in refrigerators and high-end washers to 10 percent by 2012.

In Europe, LG currently has 7 percent of the refrigerator market and 4 percent of the overall washing machine market.

Sales in Europe account for about 10 percent of LG's global home appliance revenue, which came at 8.6 trillion won ($6.9 billion) in 2008.

Lee Young-ha, chief executive of LG's appliance unit, said the firm was optimistic on the business outlook for the rest of the year, despite concerns that the recovery in the South Korean won currency may weaken its price competitiveness.

"I can see signals that the global economy is recovering and I don't see any sharp decline (in the business), although benefits from the (weak) won are decreasing," he said.

Lee's comments, made at a news conference in Seoul, were embargoed until Wednesday for the IFA consumer electronics trade show in Berlin.

LG unveiled in the show appliances featuring advanced technologies to save power and improve performance, including an washing machine with larger capacity in the standard-size cabinet and a refrigerator adopting the latest energy-saving linear compressor.

Lee also said LG planned to strengthen its cooking and cleaning appliance lines and expand its newly started household healthcare business.

"Cooking appliances have big potential for us and can become our new growth engine," Lee said. "We are also finding new markets for dryers and dishwashers."

Shares in LG Electronics rose 1.1 percent by 0503 GMT, outperforming the wider Seoul market's <.KS11> 0.3 percent loss.