LG Electronics has forged a partnership with Raya Electric, a subsidiary of Raya Holding for Financial Investment, to produce LG-branded home air conditioners in Egypt. This collaboration will leverage a manufacturing as a service (MaaS) business model, utilizing over 60% locally sourced components.
Aligned with the Egyptian government's initiative to boost local content in home appliances while meeting international standards, Raya Electric has invested over EGP 350 million to enhance its research, development, and manufacturing capabilities. The factory, located in 6th of October City, spans 20,000 square meters and boasts cutting-edge technology. It has an annual production capacity of 300,000 units and holds multiple international certifications for quality, occupational health and safety, and environmental management.
Over the next three years, LG aims to leverage Raya Electric's capabilities to produce more than 150,000 units annually, catering to the rising demand in the Egyptian market and supporting exports to regional markets. This partnership underscores LG’s significant role in strengthening the Egyptian economy through its long-standing presence and investments.
Usama Zaki, CEO of Raya Electric, said: “Being chosen as a manufacturing partner for LG highlights our manufacturing capabilities and LG’s confidence in us. This collaboration allows Raya Electric to use its Original Design Manufacturing (ODM) platform, adhering strictly to both Egyptian and international industry standards.”
Billy Kim, Chairman of LG Egypt, emphasized that this partnership aligns with LG’s strategy to support local manufacturing and reflects the company’s longstanding commitment to the Egyptian market, where it has operated for thirty years.
Raya Holding for Financial Investment reported a substantial increase in consolidated net profit, reaching EGP 330.95 million in the first quarter of 2024.
