LG spins off air conditioning as a separate division
LG Electronics has spun off its air-conditioning operation with the launch of LG Air Conditioning Company.
The company became number one worldwide in 2000 with sales of 4.1 million units, a position it has held ever since, with over 15 million units sold in 2008. One out of every five air conditioners sold is claimed to be made by LG.
LG is now broadening its focus from the consumer market to the business-to-business sector to reinforce its presence in the solutions market.
Hwan Yong Nho, CEO of LGAC, says, ‘Our solutions business will grow into a very profitable one in the future, and LG aims to grow its sales to more than US$4 million by 2010. This will be achieved by constantly developing capabilities and reaching out further in emerging markets.’
Through recent structural changes, the solutions business is now part of LG AC. The importance of solutions is growing in the B2B market since the number of intelligent buildings is on the rise. Solutions business units can solve the problems relations to energy-consumption control right from the construction phase of a building. LG will create total solutions that can completely control air conditioning, electricity, lighting, security and energy consumption.