LG Leverages Industry Leadership By Launching New Air Conditioning Company
Seoul, Korea, January 6, 2009 – 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 today 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 businesses 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.
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 businesses 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.
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