November 23, 2024

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[THE INVESTOR] Korean home appliance makers are boosting efforts to dominate the North American market, showcasing air conditioning products tailored for local consumers at an exhibition that kicked off in the US on Jan. 30.

At the 2017 International Air Conditioning, Heating, Refrigerating Exposition, known as AHR Expo, in Las Vegas, Samsung Electronics unveiled the Max Heat Series designed specifically for cold regions as well as the world’s first wall-mounted Wind-Free AC, the company said on Jan. 31. 

LG Electronics' booth at the AHR Expo in Las Vegas, Nevada. LG Electronics

The Max Heat Series provides high heating capacity with 100 percent efficiency down to -15 degrees Celsius outside ambient temperatures. For extreme weather, the commercial DVM S Max Heat uses Flash Injection technology to power maximum heating capacity in temperatures as low as -25 degrees Celsius.

Samsung topped the US home appliance market with a 17.3 percent market share last year, according to market researcher Tracqline Monday. The No.1 Korean electronics maker even beat out Whirpool, the long-time No.1 American home appliance producer.

LG Electronics, the second biggest in Korea, came in third with 15.7 percent.

At the expo, LG showcased not only final products but also parts specially used for American-targeting products for the first time.

LG introduced the Multi V 5, Multi V S and Multi F Max series of air conditioning system featuring energy saving and compactness. The Multi V 5 model is equipped with LG’s original high-efficiency inverter compressor.

The company has supplied its AC systems for public facilities in the US, including Bexar County Courthouse in Texas and Chicago Motor Club. 

Samsung Electronics' booth at the AHR Expo in Las Vegas, Nevada. Samsung Electronics

LG also unveiled about 30 types of compressors and motors used for AC systems at the event. The company plans to sell more than 40 percent of its total production of the parts to the North American market.

“LG will expand further in the North American market with its distinguished solutions in the AC system and competitive parts,” said Song Dae-hyun, head of the home appliances and air solution division at LG Electronics.

Meanwhile, industry data showed Tuesday that LG Electronics reaped more profit compared to Samsung in the home appliance business last year despite their overall revenue gap.

LG‘s home entertainment, home appliance and air solution divisions recorded an operating profit of 2.57 trillion won ($2.19 billion) on sales of 34.6 trillion won. The company’s ratio of operating profit to sales came to 7.4 percent.

Samsung Electronics‘ consumer electronics marked an operating profit of 2.64 trillion won on revenue of 47.5 trillion won, with its operating margin standing at 5.6 percent. 

By Song Su-hyun/The Korea Herald (song@heraldcorp.com)