South Korea's LG Electronics and Japan's Hitachi Plant Technologies have agreed to set up a water treatment joint venture in Seoul which will start operations in October, LG said Monday.

LG-Hitachi Water Solutions, in which LG will hold 51 percent and Hitachi the rest, will focus on municipal water supply, sewage treatment, industrial water supply, industrial wastewater treatment and reuse and recycling of wastewater for local companies and governments, the Korean firm said in a statement.

LG said the joint venture was expected to become a leader in the rapidly growing water treatment industry by combining LG's strength in manufacturing and technology and Hitachi's expertise in the industry.