LG LEVERAGES INDUSTRY LEADERSHIP BY LAUNCHING NEW AIR CONDITIONING COMPANY
Company prepares to tackle global HVAC market during downturn
Australia, Sydney, January 13, 2008 - LG Electronics, the world's leading air conditioner manufacturer, announced its vision and business strategy for the challenging year ahead at a press conference held last week in Seoul, Korea.
The company announced the spin-off its successful air conditioning operation from its Digital Appliance business last month as part of its re-alignment to better meet the needs of customers and shareholders in the years ahead. The new business unit will allow the company to be even more competitive in the global heating, ventilating and air conditioning (HVAC) market. LG's Air Conditioning Company will focus exclusively on commercial and residential air conditioning and business solutions, including home networking (HomNet) and building management solutions (BMS).
"Our new organization is better positioned to compete in the global HVAC market and will allow us to better serve our customers," said Hwan-yong Nho, CEO of LG Air Conditioning Company. "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."
The formation of a separate air conditioning unit will help LG expand beyond the residential and commercial business to be a bigger player in the industrial and specialized markets, providing total HVAC packages optimized for both home and work environments. The Air Conditioning Compressor Business Team, now under the new Air Conditioning Company, is expected to play a key role in the new integrated company. The company will continue to fine tune its organization to better respond to the rapidly changing air conditioning market. Along with this, LG will seek out additional opportunities for mutually beneficial collaboration between units within the company while increasing its focus on building management solutions, home networking and renewable energy.
Despite the global economic downturn that emerged in the second half of 2008, sales of LG's residential air conditioners topped USD 5 billion last year, a record for the company. Although 2008 sales figures for all manufacturers have not been released yet, LG expects to be the global air conditioner sales leader for the ninth consecutive year. LG also became the first air conditioning company to sell 100 million units cumulatively, which averages out to approximately 4.8 air conditioners sold per minute since 1968 when the first unit rolled off the assembly line in Korea.
As part of its overall strategy, LG Air Conditioning Company will also strengthen its international marketing capabilities with six Regional Business Leaders to oversee Europe, CIS, the Middle East, Asia, Central and South America and China. Product Business Leaders will be individually accountable for incorporating more consumer research during the product development phase and maximizing efficiencies at every step from supply chain management to production.
About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in 114 operations including 82 subsidiaries around the world. With 2007 global sales of USD 44 billion, LG is comprised of five business units - Home Entertainment, Home Appliance, Air Conditioning, Business Solutions and Mobile Communications. LG is the world's leading producer of mobile handsets, flat panel TVs, air conditioners, front-loading washing machines, optical storage products, DVD players and home theater systems. For more information, please visit www.lg.com.
About LG Electronics Air Conditioning Company
LG Electronics Air Conditioning Company (AC) is a leading player in global air conditioning market, manufacturing both commercial and residential air conditioners and providing business solutions such as home networking (HomNet) and building management solutions (BMS). From consumer goods to industrial and specialized air conditioning systems, LG AC provides a wide range of products for heating, ventilating and air conditioning. Through constant innovation in manufacturing, R&D and marketing, LG AC has broken its own sales records since 2000, securing its position as the No. 1 maker of residential air conditioners for eight consecutive years.
For further information, images or to organise an interview please contact:
Nea Pilgrim, Burson-Marsteller
Tel: 02 9928 1524 (direct)
Mob: 0431 091 391
Fax: 02 9928 1557
Emma Kirkaldy, Burson-Marsteller
Tel: 02 9928 1518 (direct)
Mob: 0423 631 002
Fax: 02 9928 1557
Distributed on behalf of LG Electronics Australia Pty Ltd
2 Wonderland Drive, Eastern Creek NSW 2766
Phone: (02) 8805 4000