LG targets $7bn sales in energy solutions business

December 5, 2007 (AME Info) – LG Electronics, a global technology leader and pioneer in home appliance convergence as well as the world’s leading air conditioner manufacturer, announced today that the company plans to expand into the energy solution business to actively respond to energy and environmental issues.Through this move, LG expects to achieve global sales of $7bn by 2010. The company also expects its proportion of sales of commercial air conditioners will increase from 30% of its total air conditioner sales to 50% by 2010.

The announcement comes close on the heels of LG’s impressive performance in the first half of the year, with Middle East and Africa revenues totaling $1.675bn. LG has also maintained its position as the leading manufacturer of air conditioners worldwide for seven consecutive years.

‘By combining our new energy solution business with our industry-leading air conditioners, we are responding to the greatest challenge of our generation – creating alternative sources of energy that are sustainable. The energy-efficient and eco-friendly needs of the region are also developing a new growth engine for future business,’

said Mr. Soon Kwon, Vice-President and Head of Sales & Marketing for LG Electronics – America, Asia, Middle East and Africa, during his visit to the UAE this week.

Starting next year, LG will diversify its business by launching energy solution services and energy-efficient systems. LG plans to begin an energy consultancy, which will be customised to help different customers develop their own eco-friendly management.

LG has already developed innovative hybrid energy solution systems such as Hybrid COGEN and Hybrid XEO, which has demonstrated the company’s capabilities in energy savings and cost reduction. Recently launched, Hybrid COGEN simultaneously generates electricity and heat utilising liquefied natural gas (LNG). Hybrid COGEN uses 32 per cent less energy while also reducing the emission of environmental pollutants such as CO2 gas.

Mr. K. W. Kim, President of LG Electronics – Middle East and Africa, added that LG will work with customers through the entire process of establishing an energy system for public buildings, from suggestion to planning, ordering, operational supervision and maintenance of the energy system.

‘With awareness about sustainable energy resources growing in the GCC construction sector, LG is well-positioned to respond to the needs of regional developers,’ Kim said. ‘Through better design and technology, LG endeavours to reduce the harmful impact on human health and the environment.’

In addition, LG will reinforce its research and development capabilities by collaborating with other companies and academic institutes, and will increase the number of sales personnel specialised in engineering and research and development personnel by 40 and 70% respectively.

LG has showed enormous growth in the residential air conditioner market, especially in overseas markets, and has been the world’s largest residential air conditioner manufacturer for seven consecutive years. LG has also expanded its market share in commercial air conditioner markets, thanks to its high energy-efficiency technology.

Hybrid XEO, a hybrid air-conditioning system, combines a highly efficient energy-saving inverter system air conditioner with geothermal heat pumps, one of the most innovative renewable energy solutions. Hybrid XEO reduces energy consumption by approximately 30 per cent annually.

According to the World Market for Air Conditioning 2006, a market research report published by the Building Services Research and Information Association (BSRIA), the air conditioner market will grow to $65bn by 2010, while the energy solutions market, including solar, wind and geothermal energy, will grow to $75bn.

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