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Key Points

LG Electronics has started mass producing air handling units at its Saudi Arabian plant, marking the company's first "Made in Saudi" product line. This local production initiative allows LG to directly participate in government-led infrastructure projects across the region. The move supports Saudi Arabia's Vision 2030 strategy focused on manufacturing localization and industrial collaboration. LG expects this localization to reduce costs and improve market competitiveness while strengthening its three-decade partnership with Saudi Arabia's Shaker Group.

Key Points: LG Electronics Begins Air Handling Unit Production in Saudi Arabia

  • LG begins mass production of air handling units at its Saudi plant for the first time
  • Local manufacturing enables direct participation in Saudi government infrastructure projects
  • Production aligns with Saudi Vision 2030 strategy for manufacturing localization
  • Three-decade partnership with Shaker Group strengthens Middle East market position
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LG Electronics begins air handling unit production in Saudi Arabia

LG launches first "Made in Saudi" air handling unit production, enabling government project participation and Middle East HVAC market expansion under Vision 2030.

"Local production will further solidify our presence in Saudi Arabia's HVAC market - LG Electronics Official"

Seoul, October 10

LG Electronics began mass producing air handling units (AHUs) at its local plant in Saudi Arabia, marking its first "Made in Saudi" product line. With this move, the company can now directly participate in government-led infrastructure projects, accelerating its expansion in the Middle Eastern heating, ventilation and air conditioning (HVAC) market, according to a report by Pulse, the English service of Maeil Business Newspaper Korea.

Quoting the company, the report said that on Thursday, LG Electronics, launched local manufacturing of AHUs, a core equipment for HVAC systems, to strengthen its competitiveness in Saudi Arabia and across the Middle East.

"Air handling units are a critical device that regulates temperature, humidity, and air quality that work in conjunction with LG's commercial HVAC systems, such as Multi V and chillers, to manage indoor environments in large buildings and industrial facilities," the report said.

The local production initiative aligns with Saudi Arabia's "Vision 2030" strategy to localize manufacturing and enhance industrial collaboration. LG expects the localized assembly and production to reduce tariffs and logistics costs while securing eligibility for Saudi government procurement projects, thus improving its market competitiveness.

The report highlighted that LG has maintained a partnership with Saudi Arabia's Shaker Group since 1995, forming a joint venture in 2006. Over three decades, the two firms have expanded their portfolio from household and commercial HVAC systems to industrial solutions, solidifying their foothold in the Middle East market.

This move is seen as part of LG's broader plan to position itself as a regional production and technology hub for air solutions across the Middle East. The company currently operates 12 global production bases, enabling it to manage a "regionally optimized value chain" that responds to local regulations and demand patterns.

Meanwhile, LG Electronics' research centers in South Korea, the United States, Europe, and India are developing climate-specific technologies. The company also signed a joint research agreement with Pusan National University in July 2025 to develop HVAC systems designed for extremely hot climates.

"Local production will further solidify our presence in Saudi Arabia's HVAC market," adding that "the launch of AHU manufacturing will serve as a new milestone in industrial cooperation," Pulse quotes an LG Electronics official.

- ANI

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Reader Comments

S
Sarah B
Interesting to see global companies adapting to local manufacturing. The Vision 2030 strategy seems to be working well for Saudi Arabia. Hope this creates more job opportunities in the region.
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Priya S
LG's 30-year partnership with Shaker Group shows the importance of long-term commitment in international business. Indian companies should learn from this approach when expanding globally.
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Arjun K
Good strategy, but I hope they maintain quality standards in local production. Sometimes localization leads to compromise in product quality. LG should ensure same quality as their Korean manufacturing.
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Michael C
The research collaboration with Pusan University for extreme climate tech is impressive. Climate-specific solutions are the future, especially with global warming concerns.
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Kavya N
This is exactly what Make in India initiative aims for! More global companies should set up manufacturing in India too. We have the talent and infrastructure. 🌟

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