RIYADH, Saudi Arabia, 15 February 2024: Al Hassan Ghazi Ibrahim Shaker Co. (Shaker Group) has announced the signing of an MoU with LG Electronics (LG) and the Ministry of Investment of Saudi Arabia (MISA) to manufacture AC compressors in Saudi Arabia. Making the announcement through a Press release, Shaker Group said the 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. 

Shaker Group said the MoU was signed in the presence of H.E. Khalid AlFalih, Minister of Investment; Abdulelah Abunayyan, Chairman, Shaker Group; Eng. Saleh AlKhabti, Deputy of Investment Transactions Deputyship, MISA; Eng. Fahad Aljubairy, Assistant Deputy Minister for Sectoral Strategies and Regulations, Ministry of Industry and Mineral Resources; Mohammed Ibrahim Abunayyan, CEO, Shaker Group; and Jong Ho Lee, CEO, LG Shaker Co. LTD. 

Shaker Group said that it marks a significant leap towards localising the production of the most technologically complex component of AC units – the compressor, and the realisation 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 Vision 2030 goals of transforming Saudi Arabia into an industrial leader and a global logistics hub. 

Furthermore, the Shaker Group said that in support of the project, MISA, along with the Ministry of Industry and Mineral Resources and the National Industrial Development Center, are collaboratively participating in the feasibility study. The joint effort, Shaker Group said,  is focused on thoroughly reviewing the viability of establishing a domestic production facility for AC compressors, with further specifics concerning investments and essential considerations to be determined in forthcoming discussions. The partnership, Shaker Group said, underscores the commitment of various Saudi ministries to foster industrial growth and technological innovation within the Kingdom. 

Eng. Saleh AlKhabti, Deputy of Investment Transactions Deputyship, MISA, said: “The collaboration between MISA, LG, and Shaker Group through this MoU is a strategic leap towards achieving Vision 2030 by localising the air conditioning industry and its components. It signifies our commitment to local industry enhancement and 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.” 

Eng. Fahad Aljubairy, Assistant Deputy Minister for Sectoral Strategies and Regulations at the Ministry of Industry and Mineral Resources, said: “This MoU embodies our strategic focus on developing the machinery and equipment sector and aligns with our National Industrial Strategy, particularly through the localisation of compressor manufacturing. It’s a testament to our dedication to enhancing local production capabilities and 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 current and future projects within Saudi Arabia.” 

Abdulelah Abdullah Abunayyan, Chairman, Shaker Group, said:  “The MoU is a testament to our commitment to contributing to Saudi Arabia’s industrial and technological advancement. By bringing the manufacturing of AC compressors to our homeland, we are taking a significant step towards self-reliance in AC production and is perfectly in sync with the country’s strategic aspirations to ascend to the forefront of global industrial leadership and establish itself as a pivotal logistics hub.” 

Mohammed Ibrahim Abunayyan, CEO, Shaker Group, said: “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 enhances our product offerings and ensures that Saudi Arabia leads in sustainable manufacturing practices. We are excited about the prospects this MoU presents for Shaker, LG, and the country driving innovation and excellence in the HVAC industry.”