LG Electronics’ new HVAC center in Europe to fight extreme temperatures

LG Electronics Inc., a leading South Korean home appliance maker, said on Monday it has set up a research center in Germany to help develop advanced heating, ventilation and air conditioning (HVAC) systems suited to extremely low temperatures.

The LG Air Solution Research Center in Frankfurt will be tasked with testing new residential, commercial and industrial HVAC products for sales in Europe.

The operation of the new research center will be backed by the European Consortium for Advanced Heat Pump Research (ECAHR) launched last month to bring together academic experts to work with LG’s specialists on research and development projects.

LG said the primary focus of the academia-industry partnership is to enhance the efficiency of the company’s heat pump systems in ultra-low temperature conditions.

The establishment of the ECAHR comes after parts of Europe recorded temperatures of below minus 40 degrees Celsius last winter, it said.

The new research center in Europe will form LG's global R&D triangle with its HVAC centers in Korea and the US.

LG is developing a new generation of heat pumps optimized for use in regions such as northern Europe, which often suffers from ultra-low temperatures.

OUTPOST TO ENHANCE PRESENCE IN EUROPE

LG’s new HVAC research center in Frankfurt will serve as its outpost to enhance its presence in the fast-growing European HVAC systems market.

Demand for eco-friendly high-efficiency heat pumps and HVAC systems is rapidly growing in Europe, which imposes one of the world’s strictest carbon-neutral policies on home appliance manufacturers.

LG expects the European HVAC market to reach $13 billion by the end of this year and grow at least 5% annually on average over the next three years.

To ride on the booming HVAC market, LG is developing compressors and motors in-house and heavily spends to advance its technology on heat exchangers, inverters and heat pumps.

For efficient sales of its products across Europe, LG is setting up infrastructure from R&D centers, sales outlets and repair and maintenance shops there.

As part of such efforts, the company is recruiting local talent in various sectors, including experts in heat pumps and smart homes.

Globally, LG operates a wide range of research and education programs to foster over 30,000 HVAC engineers annually in 43 countries. It has established the LG HVAC Academy, its training center, in 62 locations worldwide.

Last November, it opened the LG Advanced Cold Climate Heat Pump Laboratory in Alaska.

LG jointly launched the lab with the University of Alaska Anchorage (UAA) and the University of Alaska Fairbanks (UAF).

LG Electronics Chief Executive Cho Joo-wan, who also goes by his English name William Cho, said earlier this year the company is making a big B2B push with a focus on HVAC products.

Lee Jae-sung, vice president and head of LG’s Air Solution Business, said: “We aim to increase our presence in the global HVAC market, including Europe, with our regionally differentiated products.”

Write to Chae-Yeon Kim at why29@hankyung.com

In-Soo Nam edited this article.