Samsung Electronics will newly build an HVAC production line at its Gwangju Plant to target the HVAC market, which is attracting attention in the artificial intelligence (AI) infrastructure industry.

Samsung Electronics announced on the 19th that it had signed an investment agreement at the Gwangju City Hall on the same day with FläktGroup Korea and Jeonnam-Gwangju Integrated Metropolitan City to establish an HVAC production line. FläktGroup is a German HVAC specialist that Samsung Electronics acquired last year for KRW 2.4 trillion.

Samsung Electronics plans to invest about KRW 240 billion to build an HVAC production line with a total floor area of 21,800㎡ (approximately 6,600 pyeong), equivalent to the size of three soccer fields, at the third campus of its Gwangju Plant in Buk-gu, Jeonnam-Gwangju Integrated Metropolitan City. This new production line is a large-scale investment taking place 37 years after the establishment of the Gwangju Plant in 1989. The Gwangju Plant began as a home appliance production base and has recently expanded its role into a core hub for producing AI home appliances such as Samsung AI refrigerators, washer-dryers, and WindFree air conditioners.

The new production line is scheduled to begin production in 2028 of products such as the coolant distribution unit (CDU), a core product of FläktGroup. A CDU is a liquid cooling device that safely circulates coolant and controls temperature, pressure, and flow rate in order to dissipate heat generated by high-performance servers in AI data centers, and it has been drawing increased attention amid the recent boom in AI data center construction.

Based on its existing production infrastructure and manufacturing capabilities, Samsung Electronics plans to develop the Gwangju Plant into a global production hub encompassing both AI home appliances and HVAC. In particular, through the establishment of this production line, the company stated that it will integrate FläktGroup’s technology and production capabilities into its domestic business and fully scale up its global HVAC business, positioning it as a new growth engine for Samsung Electronics.

Established in 1918, FläktGroup operates 14 HVAC production lines and eight research centers around the world, including in the United States, Europe, and Asia. It also manufactures and supplies HVAC equipment for industrial manufacturing facilities and commercial facilities such as hotels and airports, in addition to data centers. The new Gwangju production facility will be FläktGroup’s 15th global base and is planned to serve as a hub for targeting AI data centers.

The signing ceremony was attended by Min Hyung-bae, Mayor of Jeonnam-Gwangju Integrated Metropolitan City, Kim Cheol-gi, Head of Samsung Electronics’ Digital Appliances (DA) Division (Vice President), and Lim Sung-taek, CEO of FläktGroup Korea (Head of DA Division HVAC Business Team). Vice President Kim stated, “The establishment of this Gwangju production line will serve as an important foundation for securing differentiated competitiveness in the HVAC business.”

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