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Samsung to form joint venture with Lennox for North American HVAC market

Published: 28 May. 2024, 18:53

JIN EUN-SOO
[email protected]

Logos of Samsung and Lennox [SAMSUNG ELECTRONICS]

Samsung Electronics will form a joint venture with U.S.-based HVAC (heating, ventilating and air conditioning) company Lennox to cater to changing housing and office space trends in North America.

The joint venture, Samsung Lennox HVAC North America, will be owned by 50.1 percent by Samsung Electronics and the remaining 49.9 percent by Lennox, the Korean electronics company, said Tuesday.

The amount of investment has not been disclosed, the company said.

"It is a great pleasure to take the first step in creating a long-term HVAC industry-leading partnership with Lennox," said Choi Kyung-sik, president of Samsung Electronics North America, in a release.

"Our collaboration, focused on strong product offerings and customer networks in the growing ductless segment, will bring new solutions to the market."

Ductless or "individual" air conditioning enables different temperature settings per room, while the ducted type centrally controls the temperature for all rooms.

According to the company, the recent emergence of apartment-type households and small and midsized office spaces has led to more demands for ductless air conditioning, which Samsung Electronics specializes in.

Samsung Electronics will deploy its internet-of-things platform SmartThings to individual HVAC products.

"This joint venture represents the union of two outstanding brands with strong market positions and deep customer trust. It is an honor to work with Samsung as we invest in solutions to meet our customers' HVAC needs," said Alok Maskara, CEO of Lennox.

Samsung Electronics has been searching for a partner in the HVAC business to bolster its growth. Previously, it was reported that the company was looking to purchase the HVAC division of Johnson Controls for $6 billion.

BY JIN EUN-SOO [[email protected]]