Cairo – Mubasher: LG Electronics has entered into a partnership with Raya Electric, a subsidiary of Raya Holding for Financial Investment, to manufacture LG-branded home air conditioners in Egypt.
For the first time in the region, Raya Electric will introduce a manufacturing as a service (MaaS) business model, focusing on designing and producing residential air conditioners with over 60% locally sourced components, according to a press release.
This collaboration aligns with the Egyptian government's initiative to increase local content in the home appliances sector while adhering to international standards.
Raya Electric has committed over EGP 350 million to enhance its research, development, and manufacturing capabilities.
The factory, located in 6th of October City, covers 20,000 square meters and features cutting-edge technology.
It has an annual production capacity of 300,000 units and holds multiple international certifications for quality, occupational health and safety, and environmental management.
Over the next three years, LG plans to leverage Raya Electric's capabilities to produce more than 150,000 units annually, addressing the rising demand in the Egyptian market and supporting exports to regional markets.
This partnership aligns with the Egyptian government's vision to enhance local manufacturing of home appliances and underscores LG's significant role in strengthening the Egyptian economy through its long-standing presence and investments in the market.
Usama Zaki, CEO of Raya Electric, said: “Being chosen as a manufacturing partner for LG highlights our manufacturing capabilities and LG’s confidence in us. This collaboration allows Raya Electric to use its Original Design Manufacturing (ODM) platform, adhering strictly to both Egyptian and international industry standards.”
Billy Kim, Chairman of LG Egypt, stated that the partnership aligns with LG’s strategy to support local manufacturing and reflects LG’s longstanding commitment to the Egyptian market, where it has operated for thirty years.
Raya Holding for Financial Investment reported an annual leap in consolidated net profit to EGP 330.95 million during the first quarter (Q1) of 2024.
