Manufacturing Saudi’s Shaker and LG to produce AC compressors By Pramod Kumar February 16, 2024, 5:36 AM Shaker Group The Shaker Group says the deal with South Korea's LG is 'a significant step towards self-reliance in AC production' for Saudi Arabia Saudi-listed Al Hassan Ghazi Ibrahim Shaker Co. (Shaker Group) has signed a memorandum of understanding (MoU) with South Korea’s LG Electronics (LG) to manufacture AC compressors in the kingdom. As part of the deal a feasibility study will be carried out to review the viability of establishing a local production facility for AC compressors and estimated financial costs. “By bringing the manufacturing of AC compressors to our homeland, we are taking a significant step towards self-reliance in AC production,” said Abdulelah Abdullah Abunayyan, chairman, Shaker Group. Saudi Arabia buys South Korean missile system Saudi Arabia signs defence deal with South Korea Work to begin in 2024 on Hyundai’s $500m Saudi car plant Shaker and LG already have a joint venture factory in Riyadh, which has been producing AC units for the local and global markets since 2008. The latest agreement contributes towards the country’s Vision 2030 objective to transform Saudi Arabia into a leading industrial and logistics hub for assembling and manufacturing a range of electronic products. In October 2022, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the National Industrial Strategy, which plans to double the value of industrial exports to SAR557 billion ($148.34 billion) by 2030. Latest figures show total investment in Saudi Arabia’s industrial sector reached SAR1.5 trillion for the first 9 months of last year, growing 1.5 percent in the third quarter of 2023 and 9.3 percent for the year to Q3 2023. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
