Shaker Group and LG launch new Saudi manufacturing facility

ShakerGroup, the exclusive manufacturer and distributor of LG Air Conditioners in Saudi Arabia, has expanded its production capacity in partnership with LG. The new production facility, located in Riyadh, Saudi Arabia, will manufacture high performance Multi Fan Air Handling Units (AHU).Total AHU market size in Saudi Arabia is estimated at SAR 600 million. 

The new facility represents an important milestone for Shaker Group and LG’s long-term strategic partnership, as the joint venture between the two companies expands to include the manufacturing and distribution of AHU units. The facility will improve delivery time by leveraging Saudi production and will support Saudi Arabia’s Vision 2030, in its aim to enhance local manufacturing and industrial self-sufficiency. The factory will allow Shaker Group to supply customers in the Kingdom with specialized AC solutions, ensuring better quality control and wider specification coverage in the market. 

Mr. Azzam Saud Almudaiheem, Chief Executive Officer at Shaker Group, commented: 

"As we seek to exploit new opportunities for growth in the market, this initiative will be of critical importance. The new production facility will support the growth of our business as we focus our efforts on developing the AHU category, thereby widening customer access to LG Air Conditioning products. This facility further cements our long-term relationship with LG, as we continue to improve the quality of life of our customers by delivering industry-leading and efficient technology. By expanding and diversifying the Kingdom’s manufacturing capacity, the project is also in direct support of the ambitions set out by Vision 2030.”

As Saudi Arabia seeks to improve the energy efficiency of public and private sector buildings, the new manufacturing facility will supply customer and project segments of varying type, including education, residential, industrial, healthcare and retail. 

The production and distribution of AHU products in the Saudi market complements Shaker Group’s wide-ranging product portfolio, which includes VRF, Screw Chiller and CentrifugalChiller products. In addition to growing sales to large-scale projects, the Group is also looking to service specialized customers such as hospitals, laboratories, clinics and food manufacturers, who require tailored AC solutions. 

Mr. Eddie Jun, Chief Executive Officer at LG-ShakerJV, said:

“Expanding our production capability in Saudi Arabia allows us to better serve our Middle East customers and strengthen our position as the leading AHU solution provider. LG AHU achieves world-class energy efficiency due to a LG 3D plug Fan that incorporates a contoured steel blade to minimize airflow resistance.This impressive technology guarantees optimal performance while demonstrating our R&D capabilities and leadership. LG will continue to cement its status as a formidable player in the Middle East energy solutions market, and we are delighted to continue to work alongside Shaker Group to realize that ambition.”

The production facility in Riyadh is the result of the shared vision of both Shaker Group and LG to support economic growth in Saudi Arabia. The latest facility represents another vital step in the long-term partnership that exists between the companies, along with their ambitious growth plans for the local and regional market.