Skip to content Skip to Search
Skip navigation

Saudi’s Shaker and LG to produce AC compressors

By Pramod Kumar
The Shaker Group says the deal with South Korea's LG is 'a significant step towards self-reliance in AC production' for Saudi Arabia 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.

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.

Latest articles

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

Flavio Cattaneo of Enel, of which Endesa is a subsidiary, and Mohamed Jameel Al Ramahi at the signing of the deal

Masdar buys stake in Spanish utilities company Endesa

The UAE’s state-owned clean energy company Masdar has agreed to acquire a minority stake in Spanish electric utility business Endesa to partner for 2.5 gigawatts (GW) of renewable energy assets in Spain. Under the agreement, subject to regulatory approval, Masdar will invest nearly $890 million to acquire a 49.99 percent stake in Endesa, with an […]

UAE markets Hong Kong

UAE capital markets partner with Hong Kong exchange

The Hong Kong Stock Exchange (HKSE) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to its roster of recognised marketplaces. The move opens the door for UAE-based companies to pursue secondary listings on one of Asia’s premier financial markets. It also follows the inclusion of the Saudi Exchange (Tadawul) […]

Car, Transportation, Vehicle

Dubai Taxi to pay $43m dividend despite profit drop

Dubai Taxi Company, a subsidiary of the emirate’s transport regulator, has approved a dividend payout of AED159 million ($43 million) for the first half of 2024 despite a marginal 1 percent increase in net profit. Net earnings reached AED187.4 million in the first six months of the year, compared to AED186.3 million at the same […]