LG Electronics is to open a new air conditioning plant in Saudi Arabia.
The $10 million plant will be set up following a deal between LG and the Shaker Group and it will initially produce 300,000 units per year.

LG vice president Kang Yongjn said: 'The $10m plant, being established at the Third Industrial City in Riyadh, will go into production by 2007-end and initially produce 300,000 air conditioning units per year.

'The plant will manufacture a wide range of its air conditioners, including window and centralised units and gradually increase its capacity to 500,000 units in the next few years.'

The firms plan to first offer products to the expanding Saudi market, but eventually towards exporting air conditioning units across the Gulf region.

The plant will employ around 2,000 engineers by 2010.