• Shaker, LG, Ministry of Investment signing the MOU.
    Shaker, LG, Ministry of Investment signing the MOU.

A leading importer, manufacturer and distributor of air conditioners and home appliances, the Shaker Group, has signed an MoU with LG Electronics (LG) and the Ministry of Investment of Saudi Arabia (MISA).

The MOU is to manufacture AC compressors in the Kingdom.

The 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.

It also marks a significant leap towards localizing the production of the most technologically complex component of AC units - the compressor.

Before the project begins a feasibility study will be undertaken.

The project will position Shaker and LG as pioneers in the local and regional manufacturing of air conditioning compressors.

It is also 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 Centre, are collaboratively participating in the feasibility study.

Shaker Group CEO, Mohammed Ibrahim Abunayyan, said the joint venture makes it the first and only company in the Kingdom with the capabilities to potentially manufacture AC compressors, marking a significant advancement in energy-efficient technology.

“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 said.

The MoU was signed in the presence of H.E. Khalid AlFalih, Minister of Investment; Abdulelah Abunayyan, chair 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; Mohammed Ibrahim Abunayyan, CEO of Shaker Group; and Jong Ho Lee, CEO of LG Shaker Co. LTD.