SEOUL, January 5, 2010 - LG Electronics Air Conditioning (AC) Company today announced an aggressive new sales target of USD 10 billion by 2013 and an organizational restructuring at its annual media event in Seoul, Korea. The event was attended by Hwan-yong Nho, the CEO of LG AC, Kyung-joon Park, LG’s Korea CEO, and key company executives. LG AC Company also discussed some core marketing strategies to achieve its ambitious goal.
To reach its objective of becoming and maintaining its global leadership in heating, ventilation, air conditioning (HVAC) and energy solutions, LG AC Company announced an organizational restructuring that would strengthen the company’s focus in residential air conditioning, commercial air conditioning, home management systems, building management systems and solar cells. This is a departure from the company’s traditional setup based on functionality with separate divisions handling roles such as production, R&D and marketing. The reorganization, which includes expanding into lighting and energy solutions, enables LG AC Company to transition towards a more solutions-based B2B business.
LG AC Company executives also revealed some of the strategies the company would pursue to achieve its business objectives. LG AC Company will focus on enhancing its eco-friendly image by producing highly efficient products and phasing out more
substances that do not meet its strict environmental guidelines. The organization also aims to provide comprehensive solutions to create the optimal residential environment, reflecting its status as a total HVAC solutions company. In particular, LG AC Company will offer Indoor Air Quality (IAQ) solutions to suit individual residential environments.
“Today, LG AC Company is faced with the opportunity to significantly grow its business by expanding into energy solutions which will serve as our new growth engine,” said Mr.Nho, CEO of LG AC Company. “We can only become a top global HVAC and energy
solutions company by adopting an eco-friendly position and looking toward energy efficient technologies and energy solutions as our main business focus going forward.”
The LG AC Company plans to reduce greenhouse gas emissions by 28 million tons by providing a range of highly-efficient inverters targeting Korea, North America and European regions by 2013. Moreover, the company plans to increase use of eco-friendly refrigerants (R-410A) from 10 percent to approximately 55 percent of its air conditioners by 2012.
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About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile Communications and home appliances, employing more than 84,000 people working in 115 operations including 84 subsidiaries around the world. With 2008 global sales of $44.7 billion, LG comprises of five business units – Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions.
The LG Electronics Air Conditioning Company is a leading player in the global air conditioning market, manufacturing both commercial and residential air conditioners and providing total solutions such as home management system (HMS), and building management solutions (BMS). From consumer and individual units to industrial and specialized air conditioning systems, LG provides a wide range of products for heating, ventilating and air conditioning. Through innovation in manufacturing, R&D and marketing, LG has broken its own sales record every year since 2000, securing its leading position in the global residential air conditioner market.