Samsung Electronics plans to invest approximately 240 billion won to establish a new HVAC (heating, ventilation, and air conditioning) production line at its Gwangju Plant. The strategy aims to expand the global production base of Frick Group, which Samsung acquired last year, into South Korea to meet the surging demand for cooling in AI data centers.
On the 21st, Samsung Electronics held a groundbreaking ceremony for the Frick Group HVAC production line at its Gwangju Plant located in Gwangju Metropolitan City, Jeollanam-do. Attendees included Samsung Electronics DX Division RepresentativeLee Sa (President), Tobias Kettele, CFO of Frick Group; Gwangju Metropolitan Mayor Min Hyung-bae; and Party Committee Chairman Ahn Do-geol.
Samsung Electronics will construct an HVAC production line with a total floor area of 21,800 square meters (approximately 6,600 pyeong) at the third campus of its Gwangju Plant, investing about 240 billion won. The new production line is scheduled to begin full-scale operations in early 2028. This investment marks the first large-scale production facility project since the establishment of the Gwangju Plant (then Gwangju Electronics) in 1989, 37 years later.
The new production line will be Frick Group's 15th global production base. It will serve as a key hub to comprehensively meet HVAC demands for AI data centers, advanced manufacturing facilities such as semiconductors and batteries, and large-scale commercial buildings, primarily focusing on Korea and East Asia. The facility is expected to mainly produce cooling water distribution units (CDUs), fan wall units (FWUs), computer room air handlers (CRAHs), and air handling units (AHUs) for large buildings.
Through the construction of the new production line, Samsung Electronics aims to strengthen its global production capabilities in advanced cooling equipment and central HVAC solutions, accelerating its entry into the rapidly growing AI data center cooling market.
Additionally, leveraging its accumulated manufacturing expertise, Samsung plans to further enhance competitiveness in various industrial HVAC products that require high quality and reliability. The company also intends to establish an integrated business system connecting product development, production, installation, and maintenance to respond swiftly and precisely to customer needs.
Furthermore, the company will implement rigorous safety management from the groundbreaking of the new production line through completion and into the Yangsan stabilization phase. Samsung Electronics also plans to actively contribute to regional economic revitalization by recruiting and nurturing top local talent and fostering mutual growth with partner companies.
Noh (President) stated, "The groundbreaking of Frick Group's new production line will be another milestone for the leap of our core growth engine, the HVAC business," adding, "We plan to develop the Gwangju Plant into an advanced manufacturing hub that produces both AI appliances and next-generation HVAC solutions."
Meanwhile, Samsung Electronics signed a contract in May last year to acquire 100% of Frick Group's shares for 1.5 billion euros (approximately 2.4 trillion won) and completed the acquisition process in November.
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