Samsung Electronics breaks ground on HVAC production line in Gwangju

Samsung Electronics held a ground-breaking ceremony Monday for a new heating, ventilation and air conditioning production line operated by its subsidiary Flakt Group at the company's Gwangju facility in South Jeolla Province.

The event was attended by Samsung Electronics Device Experience Division President Roh Tae-moon, Flakt Group Chief Financial Officer Tobias Ketelé, Gwangju Mayor Min Hyung-bae and Ahn Do-geol, chairman of the ruling party's Gwangju chapter.

In remarks at the ceremony, Roh said the ground-breaking "will mark another milestone in the leap forward for our HVAC business, a core growth engine of the company," adding that Samsung plans to develop the Gwangju facility into "an advanced manufacturing hub that produces both AI home appliances and next-generation HVAC solutions."

Samsung Electronics will invest about 240 billion won ($174 million) to build an HVAC production line spanning 21,780 square meters at the third campus of its Gwangju facility. The new line is scheduled to begin full operations in early 2028.

The new production line will be Flakt Group's 15th global manufacturing base and represents Samsung Electronics' largest production facility investment at the Gwangju site since the campus opened in 1989 — a span of 37 years. The facility will serve as a key hub meeting demand for advanced cooling equipment and central air conditioning products, primarily across Korea and East Asia.

The line will produce cooling distribution units, fan wall units, computer room air handlers and air handling units for large buildings, targeting AI data centers, advanced manufacturing facilities for semiconductors and batteries, and large commercial complexes.

Samsung Electronics plans to use the new production line to strengthen its global manufacturing capabilities and respond to rapidly growing demand for AI data center cooling and air conditioning systems, while boosting its competitiveness across industrial HVAC applications.

The company also plans to build an integrated HVAC business framework — tightly linking product development, production, installation and maintenance — to respond to customer needs quickly and precisely.

Samsung Electronics said it "plans to maintain rigorous safety management from the ground-breaking through to completion and mass production stabilization," and that it will "actively contribute to revitalizing the local economy by recruiting and developing talented workers in the region and pursuing shared growth with partner companies."

Samsung Electronics acquired Germany-based Flakt Group in November last year, bringing it on as a subsidiary to enter the central air conditioning market targeting AI data centers. Flakt Group develops and supplies HVAC equipment and solutions for AI data centers, covering both air cooling and liquid cooling.

Flakt Group established a Korean subsidiary in May and set up an office in Suwon's Yeongtong-gu — where Samsung Electronics' headquarters is located — last month, before announcing plans to invest 240 billion won in Gwangju to build an air conditioning product manufacturing line.

The company has recently begun recruiting experienced staff to handle finance, logistics and procurement for the new production facility — the first hiring drive since Flakt Group established its Korean subsidiary.

Key roles cover finance and accounting, imports and logistics, and purchasing and order management. Given that the business is in its early stages, the new hires are expected to support overall operations by working closely with accounting and logistics partners as well as government agencies.