LG air conditioners to be manufactured in Egypt
31st July 2024
EGYPT: LG has signed a deal with Egyptian company Raya Electric to manufacture its LG-branded residential air conditioners in the country.
The deal marks the first time in the Middle East and Africa that Raya Electric, a subsidiary of Raya Holding for Financial Investments, has offered its customers a manufacturing as a service (MaaS) business model by designing and manufacturing residential air conditioners that include more than 60% of locally produced parts.
This cooperation is said to be in line with the Egyptian government’s direction to increase the localised content in the home appliances industry while ensuring the compliance of Egyptian products with the highest international standards.
Raya Electric’s investments amount to more than EGP350m (US$7.2m) to build its capabilities in research and development, and its manufacturing capabilities, with an annual production capacity of 300,000 units through its 20,000m2 factory located in 6th of October City.
LG plans for Raya Electric to be producing more than 100,000 units annually within the next three years to meet the growing demand in the Egyptian market and studying for export to some regional markets.
“Through this cooperation, Raya Electric leverages its own original design manufacturing platform, which strictly adheres to the latest Egyptian and international industry standards after passing numerous audits conducted by LG’s global teams to ensure full compliance with the product design, the manufacturing, and the quality control processes for the manufactured products in accordance with LG’s global standards,” said Raya Electric CEO Usama Zaki.
“An Egyptian company, an Egyptian team, an Egyptian product designed and manufactured with specifications and quality accredited by one of the leading global brands,” he added.
