LG ANNOUNCES AMBITION TO BECOME TOP-TIER GLOBAL HVAC SOLUTION PROVIDER
LG Electronics (LG), at a press
conference held on July 8 at LG Sciencepark in South Korea, presented a strategic roadmap aimed at
transforming its ES Company into a top-tier global provider of heating,
ventilation and air conditioning (HVAC) solutions by 2030. To achieve this
goal, the company plans to drive growth by expanding its industrial and
commercial B2B revenue " including from AI data center cooling " and
by providing regionally tailored heating and cooling solutions. In line with
its "3B strategy" (Build, Borrow, Buy), LG will
also pursue serial acquisitions to enhance core capabilities and diversify its
business portfolio.
By strengthening its
competitiveness in both high-efficiency HVAC hardware and non-hardware
solutions, LG aims to achieve KRW 20 trillion in
HVAC revenue by 2030 as part of its mid- to long-term growth strategy.
Boosting Industrial B2B Sales as Demand Surges in the AI Era
LG continues to scale its presence in the B2B sector, supplying
advanced chiller systems for data centers and large-scale commercial buildings.
With the global chiller market expected to reach USD
12 billion by 2027, the company aims to reach USD 720 million (KRW 1 trillion)
in sales within two years, establishing the business as a core future growth
driver.
LG's portfolio includes diverse
data center-specific cooling technologies " such as liquid cooling systems
using coolant distribution units to directly cool server chips, chiller-based
air cooling systems and HVAC solutions compatible with direct current power
environments. In 2025, LG expects to more than triple orders for its data
center cooling solutions compared to the previous year, marking it as a key
growth engine.
To develop optimized solutions for AI data centers, LG established
a dedicated testbed " the LG AI Data Center HVAC Solution Lab " at
its Pyeongtaek chiller plant earlier this year. The facility simulates a wide
range of AI server environments to conduct systematic performance testing of
LG's advanced cooling solutions. Most recently, the company began pilot testing
its liquid cooling technology in collaboration with LG U+, a leading South
Korean telecommunications and digital services provider, to further validate
and refine its thermal management capabilities.
Strategic Acquisitions Fueling HVAC Capabilities and Portfolio
Expansion
As part of its growth strategy, LG is actively pursuing strategic
acquisitions to reinforce its HVAC expertise and broaden its portfolio. Most
recently, the company acquired a 100 percent stake in OSO, a leading Norway-based water heating solutions provider, to
solidify its position in the European heating market.
Guided by its 3B strategy,
LG is simultaneously building internal capabilities through initiatives like
the Air Solution Lab and HVAC Academy (Build), forming R&D partnerships
with academic institutions (Borrow), and continuing to identify high-impact
M&A opportunities (Buy).
Expanding B2B Reach via Deep Localization and Non-Hardware Revenue
Growth
LG is rapidly expanding its presence in the commercial HVAC
market, delivering solutions to logistics centers, retail complexes and other
large infrastructure projects. Recent highlights include the installation of
its high-efficiency Multi V i™ system at a major logistics hub in Tuas, Singapore, and the supply of 28,000 RT of chillers to
The Avenues-Riyadh, a major mixed-use complex in Saudi
Arabia. These projects showcase LG's ability to meet local regulations
and customer requirements through tailored, region-specific solutions.
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