LG Innotek's production site in Hai Phong, Vietnam (LG Innotek)

LG Innotek said Friday it would invest 375.9 billion won ($268.3 million) in a facility in Vietnam to respond to new models in the optical solutions business and enhance its competitiveness.

The investment period will extend until Dec. 31. of the following year.

The new investment is part of the company’s previously announced plan to invest 1.3 trillion won in expanding its production subsidiary in Hai Phong, Vietnam.

The Vietnam production facility primarily manufactures camera modules. The new plant is scheduled for completion by the end of this year, with mass production targeted for next year.

“This expansion will more than double the production capacity of the Vietnam facility for camera modules,” an LG Innotek official said.

This move is expected to enable more stable client supply and further strengthen domestic and global supply chains.

LG Innotek’s optical solutions division supplies camera modules for Apple’s iPhones.

In the third quarter of this year, the optical solutions division recorded sales of 12.03 trillion won, accounting for 82.6 percent of the company’s total revenue.

By Jie Ye-eun (yeeun@heraldcorp.com)