Samsung Plans Korea HVAC Factory

Samsung Electronics will invest approximately KRW 240 billion ($158 million) to establish a heating, ventilation and air conditioning (HVAC) production line in Gwangju, South Korea, targeting rising demand for cooling systems, including those used in artificial intelligence data centers.

The 21,500-square-meter facility is expected to begin operations by 2028. It will manufacture HVAC products developed by FläktGroup, the company acquired by Samsung last year, and will become Samsung’s 15th manufacturing facility worldwide.

Samsung said the production line will support the company’s expansion into Korea’s HVAC market, supplying equipment and infrastructure to industrial sectors nationwide. The company plans to focus on advanced cooling solutions for AI data centers, where demand for efficient thermal management is growing.

Cheolgi Kim, executive vice president and head of Samsung’s Digital Appliances Business, said the investment would provide a foundation for making HVAC a new growth engine. FläktGroup CEO David Dorney said the companies would combine Samsung’s AI expertise with FläktGroup’s HVAC capabilities to expand across Korea and Asia.