LG Electronics (LG) continues to prioritize its investment in Saudi Arabia with the recent upgrades to its Riyadh facility. In partnership with Al Hassan Ghazi Ibrahim Shaker Co. (Shaker), Saudi Arabia’s leading importer, manufacturer and distributor of air conditioners and home appliances, LG and Shaker are collaborating to bring a new era in the local manufacturing industry. The LG-Shaker plant is deploying industrial robots and artificial intelligence (AI) technology to automate the production process and optimize operational efficiency.
This comes after LG and Shaker expanded production capacity with a new facility in Riyadh, which opened in April of last year. The adoption of cutting-edge automation technology will result in increased output and enable the plant to produce components that are now sourced, in part, from external providers. With the far-reaching upgrades to its facility, LG-Shaker will accelerate manufacturing capabilities and reduce production costs, boosting its competitiveness in the Saudi AC market, which is one of most important in the Middle East and is expected to grow steadily over the next few years.
Scaling up production by adopting robotics and AI will provide better control of supply chain and enhance the ability to serve customers in the region to meet market demand and fast-changing consumer needs.
The facility also allows LG to build its Variable Refrigerant Flow (VRF) systems in Saudi for the first time. LG VRF solutions are among the most versatile and powerful air conditioners, offering a cost-effective system and an easier installation. LG VRF solutions provide a great experience for both indoor and outdoor units. It minimizes efficiency losses and provides sustainable energy benefits. Providing exceptional comfort, energy efficiency and reliability, LG VRF solutions offer cost effectiveness and easier installation, and thus, are widely considered to be among the most versatile and powerful system air conditioners.
Since commencing operation in 2018, the LG-Shaker manufacturing facility in Riyadh has widened the availability of high-performance LG residential and system air conditioners across the Middle East and North Africa, including the Gulf states and Egypt. Representing LG’s commitment to the communities where it operates, the AC production facility has aided in the development of a robust local manufacturing sector, in line with the goals of Saudi Arabia’s Saudi Vision 2030 and National Industrial Development and Logistics Vision (NIDLP).
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