LG electronics and H.G. Ibrahim shaker unleash their new air conditioner factory in Riyadh
- The future AC production base for KSA and GCC countries -
LG Electronics, a leader in Air Conditioners and his sole distributor in Saudi Arabia H.G. Ibrahim Shaker Co. Ltd announced the inauguration of Air Conditioning joint venture factory named LG-Shaker Co. Ltd. in Riyadh. HE Mr. Abdullah bin Ahmed Zaniel Ali Reza, the Minister of Commerce and Industry and HE Mr. Lee Jaegil, Korean Ambassador to the Kingdom of Saudi Arabia honoured the opening ceremony as well as LG Electronics and H.G. Ibrahim Shaker Company Top management with huge crowd of media people.
Located at Al Taweer Industrial City, south of 2nd Industrial City in Riyadh, the new LG-Shaker factory was invested USD 35 million (SAR 131 million) and expected to produced capacity of 250,000 units per year, and it will reach 500,000 units per year within the next 5 year with LG holding a 49% and H.G. Ibrahim Shaker Company and other partners 51%.
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.
Mr. Hassan Shaker, CEO of H.G. Ibrahim Shaker Co, highlighted the superb after-sales service and support that the company extends to its dealers and end users through 17 Shaker service centers, 250 highly qualified technicians and more than 100 mobile units, This is in addition to 10 authorized service centers. He praised LG for its dedication to bring the finest quality products to Saudi Arabia.
Mr. Hussein Shaker, CEO of LG-Shaker Co. Ltd. Mentioned, “Air Conditioning business is witnessing contentious growth here in the Kingdom and we were at the heart of this growth. We estimate that the KSA market is growing at an average rate of more than 7% annually and the size of the market is expected to be USD 800 million this year. LG-Shaker Company will play a pivotal role in the growth of LG and Shaker’s partnership as well as business not only in the Kingdom but also in the region. ”
As a final, Mr. Y.H. Lee stressed that that setting up the AC factory in KSA will not only create new job opportunity for young Saudi generation but also transfer them the LG’s latest AC technology. Moreover, they will produce specifically designed and engineered AC unit for our Saudi customers by taking into consideration the nature of the environment and climate here in the Kingdom.
Very soon LG-Shaker Co. is expected to export to the GCC countries and other neighbourhood countries, and which will also contribute into KSA economy in the long run.
LG is currently operating air conditioner plants in Korea, China, Thailand, India, Turkey, Brazil, Vietnam and Iran (Technical Alliance). With the eighth plant in Saudi Arabia added to the global network, LG Electronics plans to secure its market leadership in the Air Conditioning business. LG-Shaker Co. Ltd will double the size of its air conditioning R&D team by 2010, and increase R&D investment to 10 percent of total sales.”
