Arçelik, LG plan 200 mln lira investment in commercial air conditioning sector
ISTANBULA partnership of Turkish white goods maker Arçelik and LG Klima will produce commercial air conditioners with the LG brand, extending their agreement until 2023, it said on May 3, as reported by Reuters.
The partnership plans an investment of some 200 million liras ($57 million) in commercial air conditioners and new technology, Arçelik Turkey CEO Can Dinçer said in a statement.
He said the air conditioning market has an around $1 billion value in Turkey and around one-fourth of this is owned by commercial sector. “Nearly all of these products are imported from foreign countries. Our aim is to create indigenous products in this market. In this vein, we will make a fresh technology investment together with our South Korean partner in line with the changing market needs and trends,” Reuters quoted him as saying at a press meeting in Istanbul.
He noted that they want to create an additional $200 million value for the Turkish economy in the short-run.
Arçelik and Koç Holding signed a joint venture agreement to manage operations of the Arçelik-LG Klima partnership at the end of October last year. Arçelik and LG Electronics have then extended their joint venture deal until the end of 2023.
Under the deal, Arçelik obtains the exclusive rights to sell LG branded commercial air conditioners in Turkey, effective from April 2017.