LG has introduced a spin off air-conditioning company in order to better serve its existing customers and shareholders, but also expand the business further by targeting industrial and specialised markets.
LG Air Conditioning Company will focus exclusively on commercial and residential air conditioning and business solutions, including home networking (HomNet) and building management solutions (BMS).
This decision is intended to make the company even more competitive in the heating, ventilating and air conditioning (HVAC) market.
Hwan-yong Nho, CEO of LG Air Conditioning Company said, “we expect LG Air Conditioning to be a core growth engine for LG Electronics in the years ahead as we continue to expand the business and capture more market share.”
LG has said that they will now be able to offer the total HVAC package to consumers and optimise it for both the home and work environment.
Another factor in its new strategy is to strengthen its international marketing capabilities with six regional business leaders to oversee Europe, CIS, the Middle East, Asia, Central and South America and China.
LG state the purpose of this is to “maximize efficiencies at every step from supply chain management to production”.
Sales of LG residential air conditioners topped USD five billion last year, a record for the company.
Even before the official sales figures are released, LG are expecting to be the global air conditioner sales leader for the ninth consecutive year.