LG to acquire European water heater manufacturer

SOUTH KOREA/NORWAY: LG Electronics is expanding its European HVAC business with the acquisition of OSO, a Norwegian manufacturer of hot water solutions.

Based in eastern Norway, OSO was established in 1932 and has production bases in Norway and Sweden. Sales are focused on the Nordics, UK, Russia, the US and Canada, as well as the shipping and offshore markets. Export sales make up about 50% of the company’s turnover.

In a restructuring of its business at the end of last year, LG Electronics established an Eco Solution (ES) Division to accelerate the growth of its HVAC business. The ES Division provides comprehensive air conditioning solutions optimized for various spaces, including household and commercial air conditioners and large-scale chillers.

LG plans to expand its product line-up to include integrated products that combine air-source heat pump indoor units with water storage, as well as heat pump water heaters. 

Commenting on the acquisition, LG Electronics ES Business Division vice president Lee Jae-sung said: “OSO’s hot water solution is a key catalyst for the advancement of LG Electronics’ HVAC business. The high-efficiency air conditioning solution that combines the know-how of both companies will not only expand LG Electronics’ market position but also contribute to further accelerating global electrification for a sustainable future.”