SEOUL (AFP) – South Korea’s LG Electronics has said it has reached agreement on a joint venture to build an air conditioner factory in Saudi Arabia.
LG said it would own 51 percent of the 30 million dollar joint venture with 49 percent controlled by Saudi Arabia’s H.G. Ibrahim Shaker.
Construction of the plant with an annual capacity of 250,000 units will begin during the second quarter of this year, it said.
LG plans to use the new plant, its ninth overseas, for exports to other Middle East countries.
LG said Saudi Arabia’s air conditioner market would rise from 450 million dollars this year to 700 million dollars by 2011.