LG explores compressor production in Saudi Arabia
15th February 2024
SAUDI ARABIA: Korean air conditioning manufacturer LG and its Saudi Arabian distributor, the Shaker Group, are exploring the feasibility of manufacturing AC compressors in the Kingdom.
The two companies have signed an MoU with the Ministry of Investment of Saudi Arabia to collaboratively participate in a local manufacturing feasibility study.
The agreement is set to strengthen the longstanding partnership between Shaker and LG, building upon their joint venture factory in Riyadh that has been producing AC units for the local and international markets since 2008.
The move would position Shaker and LG as pioneers in the local and regional manufacturing of AC compressors, in alignment with the Kingdom’s Vision 2030 goals of transforming Saudi Arabia into an industrial leader and a global logistics hub.
“The collaboration between MISA, LG, and Shaker Group through this MoU is a strategic leap towards achieving the Kingdom’s Vision 2030 by localising the air conditioning industry and its components,” commented Saleh AlKhabti, deputy of investment transactions deputyship at MISA.
Shaker was founded in 1950 and is the importer and distributor of several leading international brands including Maytag, Ariston, Indesit, Midea, Bompani, and LG in Saudi Arabia, and the sole distributor of LG air conditioners in Saudi Arabia.
