Korean firms cash in on European heat wave as air conditioner demand surges

A relentless heat wave pushing temperatures close to 40 degrees Celsius across Europe has triggered an explosion in air conditioner demand, sending sales soaring and forcing South Korean home appliance makers to race to keep up with export orders by running their production lines at full capacity.

LG Electronics' air conditioner sales in Europe last month rose by more than double digits compared with the same month last year, according to industry sources Monday. The increase is particularly striking given that last June was already an exceptionally severe heat wave season in Europe — widely described at the time as hot enough to "melt the Eiffel Tower."

Specific sales figures were not disclosed for commercial reasons, but sales surged particularly in France and Spain, two countries hit hardest by the heat. "Home air conditioner sales in Europe, centered on Southern and Western Europe, grew by double digits compared with last year," an LG Electronics employee said.

LG Electronics produces air conditioners for the European market at factories in China and Turkey, but its Changwon factory — located within the Changwon National Industrial Complex — has also been mobilized to meet surging demand. The Changwon plant has been running its air conditioner production line about 10 hours a day since April, when maintenance work was completed, keeping it at effectively full capacity.

Unlike Asia, where floor-standing units are preferred, Europe's market is dominated by demand for wall-mounted models — a characteristic LG Electronics capitalized on by leading with a wall-mounted lineup. Portable air conditioners, which are easy to install and cause minimal damage to exterior walls, have also been well received in the region.

Small and medium-sized enterprises in the Changwon area are also benefiting from the European heat wave windfall. Weltem, a company based in the Masan Free Trade Zone that primarily produces portable industrial air conditioners, saw sales to existing major clients including in the United Kingdom rise by roughly 15 to 20 percent last month compared with the same period a year earlier.

Weltem has consistently participated in trade exhibitions in Germany and other European countries since the early 2000s, building its brand recognition there. The recent intensification of heat waves has highlighted the convenience of portable air conditioners, driving up demand.

To keep pace with the increased orders, the company has also been running its factory at maximum capacity since early March, producing about 500 portable air conditioners a day.

Officials from both LG Electronics and Weltem told Yonhap that eco-friendly refrigerants had played a major role in winning over the European market. "Europe places great importance on carbon neutrality policy and is considered one of the world's strictest regions for greenhouse gas and refrigerant regulation — and beyond our technology, eco-friendly refrigerants have played a big part in our European market commitment," they said.

"Air conditioner sales are rising in other global markets as well due to seasonal factors, but the demand surge in the European market driven by climate change is the most pronounced," an industry official said. "For domestic companies with eco-friendly, high-efficiency technology, this is becoming an opportunity for new market expansion."