LG aims for 30 per cent growth in Saudi Arabia air con market

LG already enjoys a 28.4 per cent market share in the Kingdom for A/Cs, but is predicting 30 per cent growth in its business this year.

LG Electronics' ambitious projections were among the topics of discussion at today's Jeddah LG dealer convention, hosted by H.G Ibrahim Shaker Company, the sole distributor of LG air conditioners in Saudi Arabia.

Mr. Hassan Shaker, CEO of H.G Ibrahim Shaker Company, welcomed a host of dignitaries at the five-star Jeddah Intercontinental, including Mr. K. H. Kim, President of LG Electronics' Middle East and Africa Operations, visiting from Dubai; Mr. C.K Cho, General Manager of LG Electronics Saudi Arabia; and Mr. Sol Bou-Nacklie, VP Marketing and Sales of H.G Ibrahim Shaker Company.

Around 275 dealer representatives attended the Jeddah event, the first leg of a Kingdom-wide road show expected to attract more than 1,000 LG Electronics dealer partners in Saudi Arabia. Conventions take place in Riyadh on Sunday, Qassim on April 25, and in Dammam on April 26.

Mr. K.H Kim, President of LG Electronics Middle East and Africa Operations, said: "LG air conditioners have maintained the number one position in the world for the fifth consecutive year. LG sold 11 million A/C units worldwide in 2004, and its success can be attributed to quality, cost competitiveness and differentiated marketing activities."

LG produced 10 million units worldwide in 2004 and aims to make a total of more than 12 million units in 2005. The global and regional digital leader is number one for both residential and commercial A/Cs in Saudi Arabia, and the commercial sector in Kingdom has been earmarked for major growth going forward.

A second LG Air Conditioner Academy in Saudi Arabia will soon open in Jeddah, providing valuable training and technical support for commercial contractors and consultants, and training opportunities for college students in the medium term.

New technology innovations and product launches will also spur growth in 2005, said Mr Hassan Shaker, CEO of H.G Ibrahim Shaker Company. "The new product line up will be more comprehensive and better adapted to local climate conditions and customer tastes. LG's new Xbtro compressor enables window A/Cs to operate more efficiently in the hottest conditions, and the upgraded Wide Panel-type ARTCOOL air conditioner, which can be customised with any choice of prints and designs, will further enhance the appeal of the popular ARTCOOL range."

Mr. C.K Cho, General Manager of LG Electronics Saudi Arabia, added: "The introduction of LG's world-first Technology Multi Power System will see multiple compressors in a single air conditioning system, reducing energy consumption by as much as 70 per cent compared to conventional A/Cs. The 11-stage Neo Plasma Filter also delivers class-leading sterilisation of bacteria, improving living and working conditions."