On the 7th (local time), a drive of about 20 minutes southeast from central Rotterdam, Netherlands, led to Ridderkerk. Amidst low-rise houses, an apartment complex under construction came into view. The four-building, 102-unit apartment complex has mostly completed its exterior, while interior finishing work is in full swing inside.
The project involves demolishing the existing building while preserving as much of the foundation and underground structure as possible, then constructing a new wood-centered apartment on top. It is recognized as one of the Netherlands' representative sustainable housing cases that reduce carbon emissions from the construction phase through residents' daily lives. The complex, scheduled for phased completion by the end of this year, will be utilized as social housing in the form of public rentals.
The heat pumps supplied by LG Electronics are also a key facility for reducing carbon emissions. Stepping inside one of the units under construction, LG Electronics' heat pump 'Therma V' and stainless steel buffer tanks were seen standing side by side. The buffer tank is a product from OSO, a Norwegian hot water solution company acquired by LG Electronics last year.
This marks the first case where LG Electronics secured orders for more than 100 units of its B2B (business-to-business) package combining Therma V with OSO's hot water solution in Europe. In the Netherlands, where apartment complexes are relatively few, this is a notably large-scale order. After touring the interior of the apartments and heading to the rooftop, rows of heat pump outdoor units bearing the LG Electronics logo came into view.
Therma V provides heating, cooling, and domestic hot water using thermal energy obtained from outside air instead of fossil fuels. It can produce thermal energy equivalent to about 4 to 5 times its power consumption. According to the company, it can reduce energy consumption by approximately 40% to 60% compared to existing fossil fuel boilers and is capable of heating even at temperatures as low as minus 15 degrees Celsius.
The buffer tank stores hot water produced by the heat pump and supplies it to the heating circuit as needed. By reducing the frequency with which the heat pump repeatedly starts and stops in response to fluctuating heating demands, it lowers the burden on the compressor, thereby improving efficiency and extending lifespan.
Robin Klauss, Head of ES Business at LG Electronics' Benelux subsidiary, stated, "European customers' demands are shifting toward integrated solutions that cover heating, cooling, hot water, heat storage, and control." He added, "We will develop hot water solutions combining not only buffer tanks but also various tank LINE-ups with heat pumps."
For LG Electronics, this goes beyond simple product supply. Previously, construction companies had to separately source and manage heat pump and buffer tank vendors for orders and oversight. LG Electronics has designed both products' capacities along with piping and control as a single system, enhancing efficiency in construction and after-sales management. This represents the opening of a new frontier in B2B business.
Notably, the Netherlands has mandated that new housing must not use gas, making heat pumps a key facility replacing gas boilers. With record-breaking heatwaves recently occurring across Europe, interest is growing in heat pumps capable of addressing both heating and cooling needs. LG Electronics is already accelerating its European market penetration by supplying heat pumps to over 100,000 households in five Southern European countries, including France and Spain.
LG Electronics' move to expand its business scope beyond products into 'space' was also evident at the electronics store 'MediaMarkt Tech Village Rotterdam' in central Rotterdam. A space resembling an actual home stood out on one side of the appliance store. This is LG Electronics' first 'space solution' store in Europe, featuring a kitchen, living room, and laundry area.
At the end of last year, LG Electronics expanded the store to 73 square meters (about 22 pyeong), nearly tripling its previous size, and completely reorganized it from a product-display focus to a lifestyle-space format. This allows customers to go beyond comparing prices and specifications online and directly experience how multiple products connect and operate in an actual home.
Jay Lomas, Marketing Manager at LG Electronics' Benelux subsidiary, said, "While consumers can compare specifications and prices online, it is difficult to experience how products integrate into daily life." He added, "Here, they can directly verify how LG technology operates in their own homes."
After the explanation, a live demonstration followed. When a window was opened, a sensor detected it and automatically turned off the air conditioner. Once laundry finished, living room lights or displays notified users of completion. By connecting LG ThinQ with Homey, a Dutch smart home platform acquired by LG Electronics, devices from different brands can now operate within a single ecosystem.
Showing the 'space' also moved sales figures. Since remodeling at the end of November last year, LG Electronics product sales have increased by approximately 20% compared to the previous year. With positive responses, LG Electronics is also considering expanding its space solution stores to other regions. A company official explained, "We are seeing more cases where customers who came to buy one product after experiencing it in person end up purchasing two, and those who viewed products online now make purchases at the store."
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