Al Hassan Ghazi Ibrahim Shaker Company (Shaker Group), a leading importer, manufacturer and distributor of air conditioners and home appliances, said it has reached an agreement with LG Electronics and the Ministry of Investment of Saudi Arabia (MISA) to manufacture AC compressors in the kingdom. 

 

This groundbreaking agreement is set to fortify the longstanding partnership between Shaker and LG, building upon their successful joint venture factory in Riyadh that has been producing AC units for the local and international markets since 2008.

 

The marks a significant leap towards localising the production of the most technologically complex component of AC units - the compressor - in the kingdom. 

 

According to MISA, the project will get the go-ahead only upon the completion of the feasibility study. 

 

In support of this ambitious project, MISA, along with the Ministry of Industry and Mineral Resources, and the National Industrial Development Center, are collaboratively participating in the feasibility study. 

 

If successful, the project will position Shaker and LG as pioneers in the local and regional manufacturing of AC compressors, in alignment with the Kingdom's Vision 2030 goals of transforming Saudi Arabia into an industrial leader and a global logistics hub, it added.

 

"The collaboration between MISA, LG, and Shaker Group through this MoU is a strategic leap towards achieving the Kingdom's Vision 2030 by localizing the air conditioning industry and its components," remarked Engineer Saleh AlKhabti, Deputy of Investment Transactions Deputyship at MISA during the signing ceremony held in the presence of Khalid AlFalih, Minister of Investment and other senior officials including LG Shaker Company CEO Jong Ho Lee.

 

"It signifies our commitment to not just local industry enhancement but also positions Saudi Arabia as a potential hub for assembling and eventually manufacturing a broader range of electronic products, aligning with our investment diversification and growth strategy," he stated.

 

Engineer Fahad Aljubairy, Assistant Deputy Minister for Sectoral Strategies and Regulations at Ministry of Industry and Mineral Resources, said the agreement embodies the strategic focus on developing the machinery and equipment sector and aligns with its National Industrial Strategy, particularly through the localization of compressor manufacturing. 

 

"It's a testament to our dedication to not only enhancing local production capabilities but also to establishing Saudi Arabia as a pivotal exporter in the region. This initiative supports our broader objective of integrating and strengthening value chains across sectors, bolstering both current and future projects within the Kingdom," he added.

 

On the key partnership, Shaker Group Chairman Abdulelah Abunayyan said this MoU was a testament to its commitment to contributing to the kingdom’s industrial and technological advancement.

 

"By bringing the manufacturing of AC compressors to our homeland, we are taking a significant step towards self-reliance in AC production and is perfectly in-sync with the kingdom's strategic aspirations to ascend to the forefront of global industrial leadership and establish itself as a pivotal logistics hub," he noted.

 

Group CEO Mohammed Ibrahim Abunayyan said: "Our collaboration with LG and MISA on this venture underscores our unique position as the first and only company in the kingdom with the capabilities to potentially manufacture AC compressors, marking a significant advancement in energy-efficient technology."

 

"This initiative not only enhances our product offerings but also ensures that Saudi Arabia leads in sustainable manufacturing practices. We are excited about the prospects this MoU presents for Shaker, LG, and the Kingdom, driving innovation and excellence in the HVAC industry at large," he added.-TradeArabia News Service