Dubai: The major environmental challenge facing the world today is global warming, and LG Electronics has said it is contributing its technology and resources to tackle it.
"LG is keen to cash in on the growing opportunities as the concept of green buildings is gaining importance in the UAE," Chris Ahn, general manager, LG Electronics Gulf, said.
As per a new resolution issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, all buildings in Dubai must comply with internationally recognised environment-friendly specifications from January.
The South Korean vendor has launched a range of third-generation eco-friendly and sustainable air conditioners - Tropical Multi V - which will cut energy consumption by 70 per cent. The product claims to have a significant impact on both the environment as well as the economy.
"The development comes close on the heels of LG's announcement that it would be expanding into the energy solution business to actively respond to energy and environmental issues by launching energy efficient solutions. Through this move, the company expects to achieve global sales of $7 billion by 2010," Ahn said.
The company, which claims to be the world's largest air conditioner manufacturer for eight consecutive years, expects its proportion of sales of commercial air conditioners to increase from 30 per cent to 50 per cent by 2010 and achieve $500 million in revenue from the region.
According to a report issued by the Dubai Electricity and Water Authority (Dewa), demand for energy increased by 24 per cent in 2007 compared to 11 per cent in 2006, although power station capacity grew only by 20 per cent. The gap between power generation and consumption is narrowing.
Increasing needs
The report shows commercial and residential developments were responsible for most power consumption at 42 per cent and 31 per cent respectively due to the construction boom.
Air-conditioners accounted for the bulk of the power consumption at 60 per cent, followed by electronic equipments at 17 per cent and home appliances at 15 per cent.
"Due to the climactic conditions prevalent in the Middle East, it is natural for this huge power consumption for air-conditioners," he said.
LG has achieved $150 million in revenue from Gulf, Yemen and CIS countries in 2007. This year the group expects $160 million from the region.
Ahn said only three vendors - LG, Mitsubishi and Daiki - use the same technology, but they can only withstand 48 degree Celsius. "Our third-generation A/Cs can withstand 54 degree Celsius."
"The company holds a market share of 28 per cent in residential segment and 18 per cent in commercial segment. Our nearest competitors are O' General and Carrier.
"We have installed semi Tropical Multi V products in about 40 towers around the Gulf. Right now we are holding talks with major developers in UAE and expect to sign a major deal with a developer soon for installing in villas," he said.
