LG emphasizes local manufacturing in Kingdom of Saudi Arabia with the production of its Air Solution product, the MULTI V 5, at the LG-Shaker factory
The technology giant also hosted visitors at its AC manufacturing factory
Riyadh, 11 March 2024 – Global technology and electronics brand, LG Electronics, recently proceed its cutting-edge Variable Refrigerant Flow (VRF) production technology to its LG-Shaker factory in Riyadh, Saudi Arabia. This significant development marks a new era in the Saudi market, introducing an innovative solution that enhances energy efficiency, and supports the dynamic needs of modern infrastructure. The introduction of VRF technology aligns seamlessly with Saudi Vision 2030, a strategic framework to develop public service sectors such as health, education, infrastructure, recreation, and tourism.
The factory will primarily produce the LG Multi V5 which features Variable Refrigerant Flow (VRF) technology. A trending product in the regional market, the Multi V5 is produced extensively in Saudi Arabia particularly in alignment with the Kingdom’s local industry. LG Mutli V 5 provides user pleaseant Air-Conditioning with sensing Temperature and Humidity at the same time. Furthermore, Multi V 5 has highest efficiency with core technology like innovated compressor with oil level sensor and heat-exchanger. It is used specially used in high-rise, hospitality, and mega projects. This is mainly due to its reliable nature as well as its energy saving features and space efficiency. This model has innovative features, such as a capability to connect to multiple indoor units to a single outdoor unit, a long piping length and capability for high elevation design. It also minimized installation space ad saves on operation costs, due to partial load operation logic.
The manufacturing facility, opened in 2008 in partnership between LG Electronics and Al Hassan Ghazi Ibrahim Shaker Co. (Shaker), Saudi Arabia’s leading importer, manufacturer and distributor of air conditioners and home appliances, is the main source of AC manufacturing. These Saudi-made ACs are further exported to 30 countries around the world. It is also one of the 11 global factories that manufacture high quality LG air conditioners. The factory not only introduced the manufacturing of Variable Refrigerant Flow (VRF) air conditioning, but it is also developed production lines year after year, marking it as a true testament to LG’s commitment to the region, aiding in the development of a robust local manufacturing sector and giving better in-house control of LG’s supply chain and enhancing the ability to service its customers and communities in the region.
The LG-Shaker factory uses cutting-edge automation technology, deploying industrial robots and artificial intelligence technology that results in increased output and automation. Through this process, the factory has enabled the production of components that are locally sourced, in part, from external providers, while further accelerating manufacturing capabilities and reducing production costs. While this factory has helped grow local manufacturing, it has also boosted its competitiveness in the Saudi AC market. The factory plays a vital role in the cooperations with mega projects in Saudi Arabia, including commercial projects such as ROSHN’s real estate developments, various buildings, schools as well as Riyadh International Convention & Exhibition Center where the World Defence Show in the Kingdom event took place. Additionally, LG will also be providing the Multi V 5 HVAC system to Mecca’s Mina project, which aims to provide cooling in the holy camp sites with 7500 tons of air conditioning. LG aims to have these units delivered by April, showcasing a testament to Saudi’s factory production capability and its commitment to supporting significant infrastructure projects with advanced cooling solutions.
LG also opened its factory door to media to showcase this state-of-the-art technology. Commenting on the tour, LGE MEA CEO Mr. llhwan Lee said, “Our commitment to our customers and shareholders is of key priority and we aim to provide the best. We happily welcomed our guests to our facility and showcased to them our latest and greatest innovations yet and look forward to further developing our facility’s capabilities. I would also like to take this moment to thank our guests and friends who took the time to come visit us today.”
Mohammed Ibrahim Abunayyan, Chief Executive Officer of Shaker Group has said: “This partnership represents a significant milestone in our journey towards enhancing local manufacturing capabilities under the Saudi Made initiative and aligning with the National Industrial Development and Logistics Program as part of Vision 2030. Working alongside LG for the Multi V5, we produce cutting-edge Saudi made technologies, enabling us to deliver products that are synonymous with quality, reliability, and eco-friendliness. Our aim is to continually enhance our market presence, align with consumer demands, and provide unparalleled value to our customers and the wider community, supporting sustainable growth, innovation, and prosperity in Saudi Arabia.”
