Saudi Arabia: Shaker inks MoU with LG, Investment Ministry for local manufacturing of AC compressors

On February 12, the Saudi Ministry of Investment and LG Electronics (LG) inked a non-binding memorandum of understanding (MoU) for Shaker Co.'s (Shaker) production of air conditioning (AC) compressors in the Kingdom.

The MoU is effective for a year from the date of signature, the company stated in a statement to Tadawul today, February 15. Its goal is to research the localization of Saudi Arabia's AC compressor industry.

At present, it is not possible to ascertain the financial consequences of this signing. The statement further stated that any developments in this regard will be promptly published.

Shaker, a prominent importer, manufacturer, and distributor of air conditioners and other home appliances in Saudi Arabia, views this development as a major step towards bringing the production of the most technologically complex part of air conditioners, compressors, to the Kingdom. Compressors have never been made there before.

The ground-breaking deal is expected to strengthen Shaker and LG's long-standing collaboration. It expands upon their prosperous joint venture plant in Riyadh, which has been manufacturing air conditioners for regional and global markets since 2008, according to the business.

Source: LG