LG Partners with Raya Electric to Manufacture Air Conditioners in Egypt

Egypt: Raya Electric, a subsidiary of Raya Holding for Financial Investments, has entered into an agreement with the Korean home appliance leader, LG. As part of this collaboration, Raya Electric has commenced manufacturing LG-branded residential air conditioners, utilizing its advanced manufacturing capabilities to meet LG’s quality standards. This marks the first instance in the Middle East and Africa where Raya Electric is offering a Manufacturing as a Service (MaaS) business model, with over 60% of the air conditioner parts being locally produced. This initiative aligns with the Egyptian government’s efforts to increase localized content in the home appliances sector while adhering to international standards.

Raya Electric has invested over EGP 350 million (USD 7.21 million) to enhance its research and development, as well as its manufacturing capabilities. The company’s factory, located in 6th of October City, spans 20,000 square meters and boasts an annual production capacity of 300,000 units. The facility is equipped with cutting-edge technology in the air conditioning industry and holds various international certifications for quality, occupational health and safety, and environmental management.

Over the next three years, LG plans to produce more than 100,000 units annually at Raya Electric’s facility to meet the increasing demand in the Egyptian market, with potential for export to regional markets. This partnership supports the Egyptian government’s goal of boosting local manufacturing of home appliances and underscores LG’s commitment to enhancing the Egyptian economy through its longstanding presence in the country.

Source: El-Eqtisade News