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Hong Kong has been picked as the location of the global headquarters (HQ) of a new joint venture between two electronics FORTUNE Global 500 companies.

Royal Philips Electronics of the Netherlands and South Korea-based LG Electronics today (July 5) formally named Hong Kong as the global operating HQ of their newly merged company, LG.Philips Displays, which specialises in Cathode Ray Tube (CRT) business.

The Chief Executive, Mr Tung Chee Hwa, met the Chairman and Chief Executive Officer of LG.Philips Displays, Mr Philippe Combes today. Mr Tung was accompanied by the Director-General of Investment Promotion, Mr Mike Rowse.

Mr Tung said: "More than 3,000 overseas companies have established their regional headquarters (RHQs) or offices here. We hope to see more and more multinational corporations (MNCs) using Hong Kong as their HQs to better monitor, manage and support their global or regional operations."

"The headquarters activities will strengthen Hong Kong's position as a leading international business hub," he added.

LG.Philips Displays' decision to base its global HQ here affirms Hong Kong as "Asia's World City", giving strong endorsement to Hong Kong's competitiveness to attract MNCs to establish a business.

Mr Tung said: "With a strategic location, a level playing field for business, excellent infrastructure, a dense network of financial and professional service firms, and political stability, Hong Kong offers a good operating environment for businesses."

On the choice of Hong Kong, Mr Combes said: "Hong Kong is the meeting place of European and Asian culture. It is the business centre of the region. Like our company, Hong Kong is an exciting fusion of European and Asian culture. The entrepreneurial climate is therefore ideal for LG.Philips Displays."

"Hong Kong's facilities, infrastructure and labour market provide an excellent entrepreneurial climate for the new company. Furthermore, Asia and especially China are very important growth markets for our company and we want our company to be close to these markets," Mr Combes added.

Mr Rowse welcomed the new investment here jointly made by two superpowers in the electronics industry. He said: "LG.Philips Displays' edge comes from its leadership in television and monitor tubes in the world. It is entirely fitting that Asia's World City should play host to the global HQ of a world leader!"

"It is not surprising that the Economist Intelligence Unit concluded in its two-year study of over 8,000 MNCs in the Asia Pacific region that 'Hong Kong is King' as RHQ base", Mr Rowse added.

Photo (1):The Chief Executive, Mr Tung Chee Hwa, pictured with the Chairman and Chief Executive Officer of LG.Philips Displays, Mr Philippe Combes (second from left), after a meting at the Chief Executive's office. Also present was the Director-General of Investment Promotion, Mr Mike Rowse (first from left).

Photo (2):The Director-General of Investment Promotion, Mr Mike Rowse, welcomed the establishment of a global operating headquarters here by LG.Philips Displays, which specialises in Cathode Ray Tube business. Photograph shows Mr Rowse (right) and the Chairman and Chief Executive Officer of the company, Mr Philippe Combes (left), at a press conference.

End/Thursday, July 5, 2001

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