Sunday, June 08, 2008

LG opened its new air condition production facility in Riyadh

Top South Korean electronics company LG Electronics (SEO:066575), in collaboration with H.G. Ibrahim Shaker Co. Ltd., set up a new air condition producing plant LG-Shaker Co. Ltd. in Riyadh. Today, the new plant was inaugurated. Saudi Arabian Minister of Commerce and Industry Mr. Abdullah bin Ahmed Zaniel Ali Reza and South Korean Ambassador to Saudi Arabia Lee Jaegil were present in the opening ceremony. Top officials of the two companies were also present in the ceremony. Al Bawaba reports:

Addressing opening ceremony, Mr. Y.H. Lee, the CEO of LG Digital Appliance Company said, “Saudi Arabia is the biggest market in the Middle East. And LG-Shaker Company will build the complete local business system from product development to production. We plan to further strengthen our global network of Air Conditioning business by utilizing all the regional production facilities including LG-Shaker factory, which we inaugurate today. With the construction of this new air conditioner production facility in Saudi Arabia, LG now has eight air conditioner production facilities in local markets around the world.”

H. G. Ibrahim Shaker Company. Ltd., Sole distributor of LG Air Conditioners, is the biggest partner for LG’s business in the world and targeting to sell accumulatively US$ 1.4 billion by 2011 starting from the year 2007 onwards in domestic market.

Located at Al Taweer Industrial City, the joint venture cost $35million. The new plant will produce 250,000 units per year and the number will be doubled in the next five years. LG has 49% share of the company and H.G.Ibrahim Shaker Company and other partners 51%.

Related article:
Al Bawaba