LG Electronics (LG) and Al Hassan Ghazi Ibrahim Shaker Co. (Shaker), Saudi Arabia’s leading importer, manufacturer and distributor of air conditioners and home appliances, have announced new investment in their joint-venture air conditioner (AC) production facility in Riyadh, Saudi Arabia. Opening a new era in the local manufacturing industry, the LG-Shaker plant will deploy industrial robots and artificial intelligence (AI) technology to automate the production process and optimize operational efficiency.
The adoption of cutting-edge automation technology will result in increased output and enable the plant to produce components that are now sourced, in part, from external providers. With the far-reaching upgrades to its facility, LG-Shaker will accelerate manufacturing capabilities and reduce production costs, boosting its competitiveness in the Saudi AC market, which is one of most important in the Middle East and is expected to grow by two percent over the next three years.
“This investment in cutting-edge production technology further cements our long-term relationship,” said Mohammed Ibrahim Abunayyan, chief executive officer at Al Hassan Ghazi Ibrahim Shaker Co. “We will continue to strengthen our partnership to bring consumers the latest life-enhancing innovations, and to contribute to the growth of domestic manufacturing in Saudi Arabia.”
Since commencing operation in 2018, the LG-Shaker manufacturing facility in Riyadh has widened the availability of high-performance LG residential and system air conditioners across the Middle East and North Africa, including the Gulf states and Egypt. Representing LG’s commitment to the communities where it operates, the AC production facility has aided in the development of a robust local manufacturing sector, in line with the goals of Saudi Arabia’s Saudi Vision 2030 and National Industrial Development and Logistics Vision (NIDLP).
“Adopting robotics and AI in our AC manufacturing plant will enable LG-Shaker to scale up in-house production and overall capacity, giving us better control of our supply chain and enhancing our ability to serve customers in the region,” said Ilhwan Lee, president of LG Electronics Middle East and Africa. “With stable production and increased output based on our long-standing partnership, LG can rapidly meet market demand and fast-changing consumer needs.”