Al Hassan Ghazi Ibrahim Shaker Co. ("Shaker Group"), Saudi Arabia's leading importer, manufacturer and distributor of Air Conditioners and Home Appliances, has announced the signing of an MoU with LG Electronics (LG) 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 MoU was signed in the presence of H.E. Khalid AlFalih, Minister of Investment; Mr. Abdulelah Abunayyan, Chairman of Shaker Group; Eng. Saleh AlKhabti, Deputy of Investment Transactions Deputyship at MISA; Eng. Fahad Aljubairy, Assistant Deputy Minister for Sectoral Strategies and Regulations at Ministry of Industry and Mineral Resources; Mr. Mohammed Ibrahim Abunayyan, CEO of Shaker Group; and Mr. Jong Ho Lee, CEO of LG Shaker Co. LTD.
This marks a significant leap towards localizing the production of the most technologically complex component of AC units - the compressor, and the realization of this project – upon the completion of the feasibility study and final agreement – 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.
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. The joint effort is focused on thoroughly reviewing the viability of establishing a domestic production facility for AC compressors, with further specifics concerning investments and essential considerations to be determined in forthcoming discussions. This partnership underscores the commitment of various Saudi ministries to foster industrial growth and technological innovation within the Kingdom.
