Seoul, South Korea-based multinational conglomerate corporation LG has plans to make Riyadh its regional headquarters for the Middle East, the company’s General Manager Mr. Ken Jeong confirmed.
Mr. Jeong announced in Saudi Arabia that LG plans to open its regional office in the Kingdom soon, noting that the company’s business turnover in the Saudi market has exceeded $500 million.
The company aims to double the production capacity of the Saudi LG air conditioner factory to 1 million units annually, up from the current 400,000, Mr. Jeong added.
These will double the total value of the company’s air-conditioning products manufactured in Saudi Arabia from $200 million to $400 million.
Mr. Jeong further added that LG is considering the expansion of products manufactured in Saudi Arabia beyond air conditioners, with the possible opening of television and computer screens factories.
Commenting on the South Korean President Moon Jae-in’s visit to Saudi Arabia, Mr. Jeong remarked that both countries are expected to strengthen their partnership in various fields, mainly technology, hydrogen, biotechnology and electronics.
President Moon’s stop in Saudi Arabia came after his visit to the United Arab Emirates, where he reportedly reached a preliminary $3.5 billion deal to sell Seoul’s surface-to-air missiles to Abu Dhabi and pledged deeper cooperation with the Arab country.
Earlier Saudi Arabia had announced that it would give time until the end of 2023 for foreign firms to set up headquarters in the country or risk losing out on government contracts.