By Kim Yoo-chul
Staff Reporter
LG Electronics, the world’s leading air-conditioner manufacturer, is setting it’s sights on emerging markets as springboard to boost sales of its strategic system air coolers.
The company plans to double its sales on the products in Thailand and Chile compared to last year.
Such commercial air-conditioners are usually installed in large intelligent buildings and the demand for the coolers has been soaring capitalizing on the southern region of Asia and South America due to a sign of recovery in construction areas, there.
LG said Tuesday that it has signed a contract with Thailand-based builder, MR Sukhumvit, to supply 3,300 system air-conditioners to the Millennium Residence in the Sukhumvit area of Bangkok.
``We will complete the shipment by the first half of next year,’’ an LG spokesperson said. On a question over the details of the deal, the official declined to comment.
The luxury condominium comprising two 50-story and two 51-story buildings to house 604 units is situated between Sukhumvit Soi 16 and 20. Construction is 20 percent complete so far and is scheduled to be finished by the end of next year.
Amid higher living expenses driven by rising oil prices, leading air-conditioner firms such as Samsung Electronics and Japan’s Panasonic are engaging in fierce competition in Thailand. According to industry estimates, the overall market is expected to rise 10 percent to 850,000 units.
Separately, the company struck a deal to supply 2,000 system air-conditioners to the 50-plus-floor Titanium La Portada building in Chile. The luxurious office building, in Santiago’s business district Sanhattan, is scheduled to be fully functional from late this year.
``We are considering injecting more cash into the countries to maintain the current upward momentum,’’ another LG official said without elaborating further.
LG hopes to reap some 30 percent of sales from system air-conditioner business out of this year’s total projection of $5 billion, according to the internal data.