LG Strengthens Position in Global HVAC Market With Expanded Portfolio at AHR 2023
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By News Reporter
Strengthening Customer Value Via International Research Collaboration and
Comprehensive Field Testing Across Diverse Climates Over Two Years
SEOUL, Nov. 28, 2025 — LG Electronics (LG) continues to accelerate the development of high-performance heat pump technologies through its Global Heat Pump Consortium, expanding research across diverse climate conditions – from cold-humid regions to extreme heat. With a sharpened focus on efficiency, dependability and field-validated performance, LG is paving the way for the new era of energy-conscious heat pump innovation.
As global demand for cleaner heating intensifies and regions such as Europe phase out fossil-fuel boilers to support decarbonization targets, heat pumps are emerging as a key technology in the transition to more sustainable climate control. However, conventional heat pump often see reduced performance in low temperatures or cold-humid conditions, limiting adoption in some markets. To overcome this challenge and accelerate global deployment, LG is ramping up collaborative research initiatives to develop solutions optimized for diverse climates.
In 2023, LG established the Consortium for Advanced Heat Pump Research (CAHR) in Alaska, joining forces with the University of Alaska Anchorage (UAA) and the University of Alaska Fairbanks (UAF) to undertake R&D for high-efficiency cold-climate heat pump solutions. Since then, LG has expanded this collaborative network – now comprising 12 universities across five countries – and broadened its research into climate-specific heating, ventilation and air conditioning (HVAC) technologies.
These efforts are already yielding measurable results. At AHR Expo 2025 in the United States, LG and research partners from UAA and UAF presented findings based on long-term operational data from joint laboratories in Anchorage and Fairbanks, demonstrating improved low-temperature heating performance and efficiency by reducing thermal resistance in outdoor heat exchangers. The research contributed to the development of LG’s residential cold-climate heat pump, winner of the 2025 AHR Innovation Award in the Sustainable Solutions category.
Further momentum is coming from the European Consortium for Advanced Heat Pump Research (ECAHR), founded in June 2024. The consortium recently completed real-world testing of LG’s R32-based Air-to-Air Heat Pump (AAHP) in Norway. Results showed that energy use and carbon emissions reductions of approximately 60 to 80 percent, compared with an electric heater.1 These significant findings were published in the August and October issues of REHVA Journal,2 a respected publication for HVAC professionals.
To verify product performance in real-life environments, LG is conducting extensive field testing across seven global locations worldwide – including the United States, China, Norway and Saudi Arabia – spanning LG’s air-to-water heat pumps (AWHP), Multi V systems and residential air conditioners.
These field studies generate insights that directly influence product design. For example, observations that frost commonly accumulates on the lower section of outdoor heat exchangers in extreme cold led LG to introduce a redesigned structure that reduces frost buildup and enhances operational stability in severe winter conditions.
Strengthened by its global research collaborations and robust field-testing infrastructure, LG is advancing the development of next-generation heat pump technologies that deliver high efficiency and reliable performance in diverse climates. Recently, LG announced a partnership with King Saud University and Pusan National University to establish a tropical-climate testing facility in Saudi Arabia – reinforcing the company’s commitment to regionally optimized HVAC innovation.
“Through strengthened global research collaboration and extensive field validation, LG is accelerating the advancement of heat pump technology,” said James Lee, president of the LG ES Company. “We remain committed to delivering reliable, high-efficiency and sustainable heat pump solutions that meet the needs of customers around the world.”
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1 Level of reduction may vary depending on outdoor temperature.
2 Evaluating the Economic and Environmental Benefits of Air-to-Air Heat Pump Systems in Nordic Climates, and Performance Analysis of Air-to-Water Heat Pump Systems Using R290 Refrigerant Adapted to Nordic Climates.
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By News Reporter
Collaboration With Expo City Dubai Marks a Major Step in Company’s B2G Expansion
SEOUL, Nov. 25, 2025 — LG Electronics (LG) is accelerating its qualitative growth strategy in the Middle East by expanding its business-to-government (B2G) portfolio.
On November 19, LG signed a strategic partnership with Expo City Dubai – a city borne out of the Dubai government-backed 2020 World Expo – to collaborate on the development of a next-generation smart city. The agreement was signed by William Cho, CEO of LG Electronics and Ahmed Al Khatib, Chief Development and Delivery Officer, Expo City Dubai.
The partnership builds on discussions at the Korea–UAE Business Roundtable, where both governments agreed to deepen cooperation in AI-powered service development and AI infrastructure. It also further deepens LG’s long-standing relationship with Expo City Dubai, an innovation-driven, people-centric community and the new center of Dubai’s future. The company previously supplied LED signage for Expo 2020 and later committed to providing built-in home appliances – including refrigerators, dishwashers and ovens – for 3,000 households currently being built within the smart city.
As a provider of Space as a Service – offering holistic, space-optimized solutions – LG will support the project with innovative infrastructure across multiple areas, including AI data center cooling solutions and smart home systems powered by the company’s AI Home Hub platform.
Through this latest partnership, LG aims to strengthen its position as a comprehensive solutions provider across the B2C, B2B and B2G sectors in the Middle East.
“With our differentiated HVAC technologies and AI Home Hub-based smart solutions, we are committed to contributing to sustainable growth in the Middle East,” said William Cho, CEO of LG Electronics. “We will accelerate efforts to capture new B2B and B2G opportunities with solutions built around each country’s future direction.”
Accelerating B2B and B2G Growth Across the Middle East
LG continues to expand its presence in major markets such as the UAE and Saudi Arabia. The company has operated in the UAE for 30 years and manages regional headquarters overseeing operations across 75 markets in the Middle East and Africa.
In September, LG signed an MoU to supply cooling solutions for the Middle East’s largest net-zero AI data center – currently being built in Oxagon, the advanced industrial district within Saudi Arabia’s NEOM gigaproject. The agreement – made in partnership with ACWA Power, SHAKER Group and DATAVOLT – positions LG as a strategic contributor to next-generation data center infrastructure.
In Saudi Arabia, LG began its air conditioner partnership with SHAKER Group in 1995 and formed a joint venture in 2006, expanding its B2C and B2B businesses. In recent years, the company has expanded its participation in government-led initiatives, driving consistent growth in B2G revenue. Looking ahead, LG aims to increase the share of its B2B business to around 45 percent of total revenue by 2030.
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By News Reporter
At LG, we are committed to nurturing expertise, collaboration and innovation in the heating, ventilation and air conditioning (HVAC) industry. As part of this commitment, we continue to create opportunities for professionals around the world to learn, share knowledge and grow together. Earlier this month, we welcomed 14 of Brazil’s leading HVAC installers to South Korea for the LG Brazil Installer HVAC Academy.
Designed to strengthen participants’ technical capabilities and reinforce our partnership network, the program combined hands-on learning with site visits and in-depth technical sessions. Participants also had the chance to present their own case studies and explore how LG’s advanced, eco-conscious HVAC solutions are shaping a smarter, more sustainable future.
The Academy began with a visit to a local reference site showcasing LG’s latest residential air conditioning systems. The visit offered participants a close-up look at how our technologies are applied in real-world settings to deliver comfort, energy efficiency and reliability.
The following day, experts from Hi-M Solutek – an LG subsidiary specializing in total HVAC services including maintenance, engineering and building management – led an immersive seminar. The session explored advanced installation methods and shared best-practice cases from across South Korea’s HVAC industry.
Brazilian participants also took the stage to present their own successful installation projects, sharing valuable insights and field expertise that sparked meaningful exchanges with peers and LG engineers alike.
The program concluded with a visit to LG Smart Park in Changwon, our world-class manufacturing site for residential and commercial air conditioners. Attendees toured the state-of-the-art HVAC showroom and participated in a dynamic Q&A session with LG’s product development team – discussing future innovations, trends and the evolving role of smart, sustainable technologies in HVAC.
The LG Brazil Installer HVAC Academy is part of our broader effort to foster collaboration and continuous learning across the global HVAC community. Alongside this initiative, we’ve hosted a series of HVAC Leaders’ Summit events for consultants from Asia, Africa and the Middle East. Most recently, in July 2025, we brought together 30 leading consultants from Central and South America in Panama for a regional summit focused on innovation and partnership.
Under our Global South growth strategy, we will continue to expand our programs aimed at strengthening long-term partnerships with HVAC consultants and installers – empowering them to deliver smarter, more efficient solutions to customers while enhancing the reputation and reach of LG HVAC.
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By News Reporter
With a Complete Portfolio of Advanced Air Solutions, Company Continues to Reinforce
Longstanding Leadership in Region’s Fast-Growing RAC Market
SEOUL, Oct. 29, 2025 — LG Electronics (LG) has reaffirmed its status as Latin America’s number one residential air conditioner (RAC) brand. According to Euromonitor International, a respected data analytics and market research company, LG has been the region’s top-selling air conditioner brand for ten consecutive years (2015 to 2024). The company also continues to lead the Brazilian RAC market with solutions that combine its proprietary Dual Inverter technology, advanced design and now, AI-powered features at competitive prices.
The Latin American RAC sales grew by 30 percent in 2024 compared to the previous year. Within the region, Brazil has shown particularly strong momentum, with annual sales nearly tripling since 2015. With RAC penetration in Brazil currently around 20 percent,1 the country’s market is projected to expand by more than 20 percent from 2024 by 2029.2 LG plans to build on this growth potential to further strengthen its leadership in Latin America.
Earlier this year, LG expanded its lineup of next-generation air conditioning solutions in Latin America with the launch of new AI-equipped RAC products: the DUALCOOL AI Air (marketed as DUAL INVERTER AI Air in Brazil) and the ARTCOOL AI Air. Powered by LG’s advanced AI core technology, these solutions are designed to enhance user comfort by sensing room conditions and automatically adjusting airflow, temperature and fan speed. The latest models also support more efficient energy use with features such as the AI kW Manager and Window Open Detection. In addition, the ARTCOOL AI Air was awarded the winner of the Red Dot Design Award and the International Design Excellence Awards (IDEA) while the DUALCOOL AI Air received the winning product of the iF Design Award this year.
“Being recognized as the number one RAC brand in Latin America for the past ten years is a testament to the quality of our products and the strong trust we have built with customers throughout the region,” said Jang Seok-hoon, head of the Residential Air Conditioners Business at the LG ES Company. “We will continue to strengthen our position by introducing innovative products tailored to the diverse needs of local consumers.”
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1 According to the Brazilian Association of Refrigeration, Air Conditioning, Ventilation and Heating (ABRAVA), only 20 percent of Brazilian households own an air conditioner.
2 Euromonitor International, Forecast Sales of Air Treatment Products by Category: Volume 2024–2029.
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By News Reporter
New Partner-Operated Plant Highlights Company’s Strategic
Commitment to Emerging Markets
JAKARTA, Oct. 23, 2025 — LG Electronics (LG) has invested in a partner-operated production facility in Bekasi, West Java, Indonesia, dedicated exclusively to manufacturing LG air conditioners. As part of the company’s strategic efforts to reinforce its Global South strategy, the new facility will enhance LG’s presence in Indonesia, help strengthen its supply chain and serve as a hub for air conditioning innovation.
Coinciding with LG’s 35th anniversary in Indonesia, the Bekasi facility spans 32,000 square meters and commenced operation last month, starting with residential air conditioner production. In its first year, the factory is expected to produce approximately 700,000 indoor and outdoor units, with plans to double capacity in the near future.
All products manufactured at the facility will adhere to LG’s stringent global quality standards and embody the exceptional energy efficiency for which the company is renowned. Implementation of LG’s Korean Quality Control system – applied at all LG production sites globally – will support consistent performance and long-lasting reliability.
The facility also supports the Indonesian government’s initiative to harmonize Minimum Energy Performance Standards with those of the Association of Southeast Asian Nations (ASEAN). Furthermore, LG’s residential solutions employ R32 refrigerant,1 underscoring the company’s commitment to environmental responsibility.
Building on LG’s advanced technologies with localized production systems, the partner-operated plant is designed to deliver solutions optimized for the Indonesian market. In line with government policy on Domestic Component Level (TDKN2), LG aims to domestically source or manufacture more than 40 percent of key components used in production at Bekasi, contributing to local self-sufficiency and bolstering the supply chain. The plant will also create jobs, stimulate the regional economy and promote knowledge-sharing in air conditioning technology. These efforts will drive new growth opportunities for LG while advancing its goal of becoming a top-tier global HVAC provider.
LG has already played an important role in Indonesia’s industrial and social development through local manufacturing, sales and R&D. With facilities in Tangerang and Bekasi supplying both the domestic and regional markets, as well as a recently established R&D subsidiary, the company continues to create employment, facilitate knowledge transfer and support national industrial growth.
Now, through investment in the new partner-operated plant in Bekasi, LG will further expand production capacity and job creation, reinforcing its commitment to sustainable growth and community well-being. This move also reflects LG’s broader Global South strategy, which extends across R&D, manufacturing, sales and maintenance, while sustaining growth in North America and Europe. By establishing manufacturing plants in key markets such as Brazil, India and Thailand, LG is enhancing its flexibility to adapt to shifting global conditions.
“The new partner-operated facility in Indonesia underscores the tremendous progress we are making in advancing our Global South strategy,” said James Lee, president of the LG ES Company. “By strengthening local production capacity, we can better provide advanced air solutions that meet the needs of customers in Indonesia and surrounding markets, while driving growth across the region.”
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1 Global Warming Potential of R32 refrigerant is 675.
2 Tingkat Komponen Dalam Negeri.
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