Al Hassan Ghazi Ibrahim Shaker Co. (Shaker Group), Saudi Arabia’s leading importer, manufacturer, and distributor of Air Conditioners and Home Appliances, has signed 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.
Mohammed Ibrahim Abunayyan CEO – Shaker Group
“Our collaboration with LG and MISA on this venture underscores our unique position as the first and only company in the Kingdom with the capabilities to potentially manufacture AC compressors, marking a significant advancement in energy-efficient technology. This initiative not only enhances our product offerings but also ensures that Saudi Arabia leads in sustainable manufacturing practices. 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.”
This partnership underscores the commitment of various Saudi ministries to foster industrial growth and technological innovation within the Kingdom.
According to the statement, “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.”
Eng. Saleh AlKhabti, Deputy of the Investment Transactions Deputyship at MISA, commented that, “The collaboration between MISA, LG, and Shaker Group through this MoU is a strategic leap towards achieving the Kingdom’s Vision 2030 by localizing the air conditioning industry and its components. It signifies our commitment to not just local industry enhancement but also positions Saudi Arabia as a potential hub for assembling and eventually manufacturing a broader range of electronic products, aligning with our investment diversification and growth strategy.”
“This MoU embodies our strategic focus on developing the machinery and equipment sector and aligns with our National Industrial Strategy, particularly through the localization of compressor manufacturing. It’s a testament to our dedication to not only enhancing local production capabilities but also to establishing Saudi Arabia as a pivotal exporter in the region. This initiative supports our broader objective of integrating and strengthening value chains across sectors, bolstering both current and future projects within the Kingdom,” noted Eng. Fahad Aljubairy, Assistant Deputy Minister for Sectoral Strategies and Regulations at the Ministry of Industry and Mineral Resources.
