Samsung Electronics To Establish HVAC Production Line in Korea

Samsung Electronics today announced that it will establish a FläktGroup HVAC production line in Korea to target the rapidly growing HVAC market, including the production of advanced cooling solutions for AI data centers.

The company plans to invest approximately KRW 240 billion (USD 158 million) to build a 21,500m² HVAC production line at its operations site in Gwangju, Korea. The new production line is scheduled to begin operations upon completion by 2028. It will manufacture HVAC products from FläktGroup, which was acquired by Samsung Electronics last year.

“Samsung’s acquisition of FläktGroup last year puts us in a unique position to expand the HVAC business and transform it into a new growth engine, to become a global top-tier company by 2030,” said Cheolgi Kim, Executive Vice President and Head of Digital Appliances (DA) Business at Samsung Electronics. “This investment in the new production line in Korea will serve as a solid foundation for achieving this goal.”

FläktGroup recently invested in expanding its manufacturing footprint – which will operate soon – through Project GAGAN, a new production facility in Pune, Maharashtra, India. With a global network of 14 manufacturing facilities, the company actively supplies products across key markets including the U.S., Europe and India.

Together with FläktGroup, Samsung will leverage the establishment of the Gwangju production line, its 15th manufacturing facility worldwide, as a strategic springboard for a full-scale expansion into the Korean market.

Samsung plans to supply HVAC facilities and infrastructure across various industrial sectors in Korea, with a particular emphasis on the surge in demand for AI data centers. To achieve this, the company will produce advanced HVAC products, including the production of advanced cooling solutions for AI data centers.

David Dorney, CEO of FläktGroup, said, “By combining Samsung’s AI expertise with FläktGroup’s HVAC product capabilities, we will be positioned to become an HVAC partner of choice in Korea and across Asia.”