LG-Shaker’s air conditioner production facility, located in the Kingdom of Saudi Arabia, is the only factory located in an Arab country and one of LG’s eleven international factories manufacturing high-efficiency air conditioners. A commercial and residential air solutions supply hub, the LG-Shaker factory is considered one of the giants of air solutions in the regional market since its 2006 inception in Riyadh. Promising its contribution to the growth of domestic manufacturing in Saudi Arabia, the AC factory, located in the Kingdom’s capital, underlines LG’s ongoing efforts to make Saudi Arabia its central hub for exports in MENA.
As it continues to prioritize its investment in Saudi Arabia, LG-Shaker has recently introduced industrial robots and artificial intelligence (AI) technology to automate the production process and optimize operational efficiency. The adoption of this cutting-edge automation technology has accelerated manufacturing capabilities leading to an increase in output and reduced production costs, which has not only boosted LG’s competitiveness in the Saudi market but has also widened the availability of high-performance LG air conditioners across the MENA region.
LG-Shaker also aims to double its Saudi air conditioner factory’s production capacity to 1 million units annually, doubling the total value of its locally manufactured products from $200 million to $400 million.
“The strength of the longstanding relationship LG has built with Saudi Arabia is cemented in our commitment to the communities in which we operate,” stated Mr. Ken Jeong, the country’s general manager. “Scaling up in-house, local production with the recent upgrades to our Riyadh facility have enhanced LG’s steady output and ability to rapidly meet regional market demand, as well as aided in the development of a robust local manufacturing sector.”
Additionally, the local availability of energy efficiency-labelled LG air conditioners has been meeting the demand of an increasingly eco-conscious market in light of LG’s recently launched Yalla Green campaign, preceding the Saudi Standards, Metrology, and Quality Organization’s (SASO)’s most recent mandate, the Seasonal Energy Efficiency Ratio (SEER). The SEER label helps consumers measure and consider their energy and electricity spend by indicating the air conditioner’s green level.
In its Riyadh AC factory, LG-Shaker has been locally producing window, split, and fresh and smart central air-conditioners, with the possibility of expanding the range of locally manufactured LG products to include television and computer screens.
On February 27th, LG Electronics hosted a factory tour in the LG-Shaker factory for top tier Saudi media and in the presence of LG and Shaker management to showcase and highlight the quality and innovation behind the Saudi-made ACs, as well as their growth in availability to a wider audience.
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