Company Aims for Leadership in HVAC with Stronger Business-focus and Expansion into Energy Solutions
SEOUL, January 5, 2010 -- LG Electronics Air Conditioning (AC) Company today an-nounced an aggressive new sales target of USD 10 billion by 2013 and an organizational restructuring at its annual media event in Seoul, Korea. The event was attended by Hwan-yong Nho, the CEO of LG AC, Kyung-joon Park, LG's Korea CEO and a number of company executives. LG AC Company also announced core marketing strategies to achieve its ambitious goal.
To reach its goal of becoming and maintaining its global leadership in heating, ventilation, air conditioning and energy solutions, LG AC Company announced an organizational re-structuring that would strengthen the company's focus in residential air conditioning, commercial air conditioning, home management systems, building management systems and solar cells. This is a departure from the company's traditional setup based on func-tionality with separate divisions handling roles such as production, R&D and marketing. The reorganization includes business expansion into a lighting and energy solutions such as solar cells. The move also enables LG AC Company to transition towards a more solu-tions-based B2B business.
LG AC Company executives also revealed some of the strategy the company would pur-sue to achieve its business objectives. LG AC Company will be enhancing its eco-friendly brand or (corporate) image by producing highly efficient products and phasing out more substances that do not meet its strict guidelines. The organization also aims to provide comprehensive solutions to create the optimal residential environment, reflecting its status as a total HVAC solutions company. In particular, LG AC Company will offer Indoor Air Quality (IAQ) solutions to suit individual residential environments.
"Today, LG AC Company is faced with the opportunity to significantly grow its business by expanding into energy solutions which will serve as our new growth engine," said Mr. Nho, CEO of LG AC Company. "We can only become a top global HVAC and energy solutions company by adopting an eco-friendly position and looking toward energy effi-cient technologies and energy solutions as our main business focus going forward."
The LG AC Company plans to reduce greenhouse gas emissions by 28 million tons by providing a range of highly-efficient inverters targeting Korea, North America and Euro-pean regions by 2013. Moreover, the company plans to increase use of eco-friendly re-frigerants (R-410A) from 10 percent to approximately 55 percent of its air conditioners by 2012.
