Shaker-LG MoU aims to study building AC compressors facility: CEO

The move aims to enhance the technical capabilities in the heating, ventilation, and air conditioning (HVAC) sector, Abunayyan told Argaam.

He added that Shaker seeks to improve the quality of its products, which contain advanced LG technologies. It also aims to establish a work system based on cooperation in the sector.

The group manufactures and produces HVAC systems locally and targets expanding the value-chain scope to include the manufacturing of compressors, which are the most important and complex components of AC systems.

While Shaker works to meet local market demand, it is currently exporting the products of its joint venture with LG to more than 20 regional markets in the Middle East and North Africa. The group's strategy is to boost production and exports in the coming years.

The agreement represents a strategic step that may help achieve self-reliance on the manufacturing of ACs as well as bring about a comprehensive change in AC technology in the Kingdom. In addition, the pact is to establish unprecedented standards within local manufacturing capabilities, the CEO explained.

Abunayyan believes that the move marks a qualitative leap towards strengthening the Kingdom's HVAC sector.

This joint initiative reflects a broader vision that goes beyond local manufacturing to include the export of AC compressors to global markets, in addition to employing technical capabilities and manufacturing expertise, as well as the Kingdom's strategic position and industrial capabilities.

The MoU will help the Kingdom become a major and prominent player in the international HVAC market, Abunayyan said.

He added that the cooperation agreement with LG and the Ministry of Investment aims to localize the production of AC compressors and evaluate the feasibility of manufacturing and production. This important step will support the Kingdom’s Vision 2030 through consolidating industrial leadership and boosting manufacturing standards regionally.

"The cooperation between Shaker and LG is based on our shared vision of innovation and excellence, through taking advantage of the capabilities of the joint factory as well as the market vision and scope of Shaker operations," the CEO said.

He added that this cooperation also aims to stimulate local production of AC compressors and establish new standards in the sector in terms of quality and efficiency.