SOUTH Korea's LG Group has signed to invest 50 million yuan (US$6.57 million) as a first-phase investment to build up its first cell-phone factory in western China. The plant in western Chongqing municipality will make spare parts for cell phones, according to the Ministry of Commerce, citing local government sources.

LG expects the plant to bring spare parts sales of up to 100 million yuan a year. Officials at LG China declined to further comment on the deal yesterday.

The South Korean maker, which is putting a bigger focus on high-end consumer electronics, is betting big profits on fashionable new phone models such as Shine and Chocolate this year. It has a sales target of US$44.5 billion globally this year, up from US$38.4 billion in 2006.