South Korean electronics giant LG Electronics Inc. said Thursday it has started production at its newly-built air conditioner factory in Saudi Arabia. LG Electronics and its Saudi Arabian partner H.G. Ibrahim Shaker Co. held a dedication ceremony of the 50,000-square meter-plant in the Saudi capital of Riyadh on Wednesday, the South Korean company said. The $35 million plant has an annual output capacity of 250,000 units and the companies plan to invest an additional $20 million by 2012 to double output, according to LG. LG Electronics sealed a joint venture deal with the Saudi company, the sole distributor of LG air conditioners in the country, for the production plant in 2006. LG now has nine overseas air conditioner plants, including ones in India, Turkey and Brazil. The Saudi Arabian air conditioner market, which stands at around $450 million, is expected to expand to $700 million by 2011, according to LG.
