Riyadh – Mubasher: Shaker Group has teamed up with South Korea's LG Group to launch a new joint venture in Saudi Arabia in an effort to boost its production capacity in the kingdom.
The two firms have launched a new production facility in Riyadh that will manufacture high-performance Multi Fan Air Handling Units (AHU), Shaker Group said in a statement on Wednesday.
The facility will improve delivery time by leveraging Saudi production and will prop up Saudi Arabia’s Vision 2030, the statement said.
“The new production facility will support the growth of our business as we focus our efforts on developing the AHU category, thereby widening customer access to LG Air Conditioning products,” Shaker’s CEO Azzam Saud Almudaiheem said.
The JV will also offer various services to customers, including retail, residential, industrial, healthcare, and education.
“Expanding our production capability in Saudi Arabia allows us to better serve our Middle East customers and strengthen our position as the leading AHU solution provider. LG AHU achieves world-class energy efficiency due to a LG 3D plug Fan that incorporates a contoured steel blade to minimize airflow resistance,” LG-Shaker JV’s CEO Eddie Jun stated.
Shaker, the exclusive distributor and manufacturer of LG Air Conditioners in the GCC country, has announced raising output capacity through collaborating with LG, while the value of AHU market in Saudi Arabia is estimated at SAR 600 million.
Shaker last reported an 8.6% year-on-year decline in its losses after calculating Zakat and Tax in the third quarter of 2018, reaching SAR 44.92 million, compared to SAR 49.17 million.
During the first nine months of 2018, Shaker’s losses after calculating Zakat and Tax rose 19.9% to SAR 102.12 million, against SAR 85.16 million in the corresponding period a year earlier.
By 1:56 pm Saudi time, Shaker's stock levelled down 0.70% to SAR 8.50.
