By Kim Yoo-chul
Staff Reporter
Amid intensifying efforts by larger South Korean manufacturers such as Samsung Electronics and Hynix Semiconductor to find a next driver for growth, LG Electronics has joined the trend by unveiling a plan for the expansion of its energy solutions business.
The world’s No. 1 maker of air-conditioners said Thursday that its latest ``hybrid energy solution systems’’ will increase air-conditioner sales by 46 percent to $7 billion in 2010, from $4.8 billion this year.
LG said the growth would mostly come from air-conditioners for commercial use.
``The proportion of sales of commercial air-conditioners will rise from 30 percent to 50 percent by 2010,’’ Lee Young-ha, CEO of the company’s Air Conditioning Division, said in a press conference held in central Seoul.
He said the company is set to invest 220 billion won in related research and development of projects over the next three years and will double the number of research-related staff to 2,100 by then from 1,200 this year.
``Eco-friendly and energy efficient products are becoming more important especially these days. We are not only responding to energy-efficiency and eco-friendly needs but also finding a prime growth engine for the future,’’ Lee said.
Industry sources said the global energy solutions market, including solar, wind, bio and geothermal energy will rise to $75 billion in 2010 and even soar to $2.5 trillion by 2030, while that of the local market will also increase to 420 billion won in three years later some 230 billion won in this year.
LG said the new energy system will be exported to overseas markets from the second half of 2009, probably centering around European and African markets.
``We are in the stage of making a detailed plan for overseas business, but it is highly likely the company targets European and African markets from the second half of the year,’’ Nho Hwan-yong, executive vice president of the division told to The Korea Times.
Asked about possible M&As to bolster moving to European markets, Nho did not entertain the possibility and added the strategy is in mind for long-term plan.
The ``hybrid energy solution systems’’ include Hybrid COGEN and Hybrid XEO and MultiV Super II.
Hybrid COGEN simultaneously generates electricity and heat utilizing liquefied natural gas using 32 percent less energy, while also reducing the emission of environmental pollutants such as carbon dioxide. The COGEN system, whose capacity is 30 kilowatts, will be sold for around 30 million won excluding installation, according to company officials.
Hybid XEO combines a highly efficient energy-saving inverter system air conditioner with geothermal heat pumps, while MultiV Super II is well-fitted for skyscrapers with easy to install. The retail prices are set 8 million won for the XEO and 15 million won for the MultiV with 29 kilowatt.