Investment Ministry says MoU with LG aims to localize AC compressor industry

Saleh Khabti, Deputy Minister for Investment Transactions at the Ministry of Investment

Saleh Khabti, Deputy Minister for Investment Transactions at the Ministry of Investment, said the signing of a memorandum of understanding (MoU) with Korea's LG Electronics to establish a factory in Saudi Arabia contributes to the localization of the air conditioning (AC) compressors industry in the Kingdom.

In addition, the move aims to enhance the attraction of other industries such as the assembly of refrigerators and TVs in the Kingdom, in preparation for building complete value chains, Khabti told Argaam on the sidelines of the signing ceremony.

He added that the attraction of industries that lure other industries is part of the ministry’s goals for fixed capital formation.

Several teams at the Ministries of Investment and Industry are working together to localize more industries, with the aim of serving not only the local markets but also regional markets

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Other agreements will be announced later, the official said.

The cooperation with the Ministry of Industry and the Industrial Center contributes to achieving the goals of the industry and investment strategies for the growth of industries in the Kingdom. This will be carried out not only through the localization of industry but also through increasing exports, replacing imports, and creating more direct and indirect jobs.

Al Hassan Ghazi Ibrahim Shaker Co. (Shaker) signed, on Feb. 12, a non-binding MoU with LG and the Saudi Ministry of Investment for the manufacturing of AC compressors in the Kingdom.