LG-Shaker opens AC factory in Riyadh
Riyadh, June 8, 2008
LG Electronics, a leader in air conditioners, and H G Ibrahim Shaker Co have inaugurated a new joint venture air conditioners manufacturing factory in Riyadh.
Named LG-Shaker Co, the unit is located Al Taweer Industrial City, south of the Second Industrial City in Riyadh.
Abdullah bin Ahmed Zaniel Ali Reza, the Minister of Commerce and Industry and Lee Jaegil, Korean Ambassador to Saudi Arabia were present during the opening ceremony along with the top management of LG Electronics and H G Ibrahim Shaker Company.
The new LG-Shaker factory, built at a cost of $35 million, has a production capacity of 250,000 units per year. The capacity will reach 500,000 units per year within the next five years, a statement said.
LG has a 49 per cent stake in the venture, while H G Ibrahim Shaker Company and other partners hold 51 per cent.
Addressing the opening ceremony, Y H Lee, the CEO of LG Digital Appliance Company, said: “Saudi Arabia is the biggest market in the Middle East. And LG-Shaker Company will build the complete local business system, from product development to production. We plan to further strengthen our global network of air conditioning business by utilizing all the regional production facilities including LG-Shaker factory, which we inaugurate today. With the construction of this new air conditioner production facility in Saudi Arabia, LG now has eight air conditioner production facilities in local markets around the world.”
H G Ibrahim Shaker Company, sole distributor of LG air conditioners, is the biggest partner for LG’s business in the world.
Hassan Shaker, CEO of H G Ibrahim Shaker Co, highlighted the superb after-sales service and support that the company extends to its dealers and end users through 17 Shaker service centres, 250 highly qualified technicians and more than 100 mobile units, in addition to 10 authorised service centres.
He said the air conditioning market is growing at an average of more than 7 per cent in the kingdom annually and the size of the market is expected to be $800 million this year.
Lee stressed that the factory will not only create new job opportunity for young Saudi generation but also transfer LG’s latest AC technology to the kingdom. They factory will produce specifically designed and engineered AC units for Saudi customers by taking into consideration the nature of the environment and climate here, he said.
LG-Shaker is expected to export ACs to other GCC and neighbouring countries.
LG is currently operating air conditioner plants in Korea, China, Thailand, India, Turkey, Brazil, Vietnam and Iran (Technical Alliance). –TradeArabia News Service