New HVAC facility to begin production in 2028, marking Samsung’s first major expansion at its Gwangju site in 37 years Samsung Electronics said Wednesday it will invest 240 billion won ($171.6 million) to build a new heating, ventilation and air-conditioning production line in Gwangju, as it expands its global HVAC business following its acquisition of FlaktGroup last year.
The new line will be built at Samsung’s third campus in Buk-gu, Gwangju, with a total floor area of 21,800 square meters, equivalent to about three soccer fields.
Production is scheduled to begin in early 2028, with the facility set to manufacture key FlaktGroup products including coolant distribution units.
The investment marks the first major expansion of production facilities at Samsung’s Gwangju facility since the site was established as Gwangju Electronics in 1989.
The new line will produce CDUs, a key component of liquid cooling systems for artificial intelligence data centers. The units connect a building’s chiller system with cold plates that directly cool servers.
Samsung will also produce fan wall units used for air cooling in data centers, computer room air handlers and air handling units for large buildings.
HVAC systems integrate heating, cooling, ventilation and air conditioning to maintain temperature, humidity and air quality inside buildings and data centers. In data centers, they play a critical role in removing heat generated by servers and keeping IT equipment running.
FlaktGroup is Europe’s largest HVAC company, with more than a century of history and a strong presence in the central air-conditioning sector. The Gwangju line will become its 15th production facility worldwide and serve as a key manufacturing base for the global AI data center market.
Samsung plans to combine FlaktGroup’s central air-conditioning technology and manufacturing capabilities with SmartThings Pro, its business-to-business connectivity and integrated control platform, and its building management solutions.
The company aims to become a leading player in the global HVAC market by 2030 by building on synergies with FlaktGroup.
Samsung also plans to develop its Gwangju operations into a global production hub for both AI-powered home appliances and HVAC products, drawing on the site’s existing manufacturing infrastructure and capabilities.
The Gwangju site began as a home appliance production base and now manufactures major AI-powered appliances, including the Bespoke AI Family Hub refrigerator, Bespoke AI Combo washer-dryer and Bespoke AI WindFree air conditioner.
It also serves as a hub for transferring advanced manufacturing technologies to Samsung’s overseas production subsidiaries. Samsung established a precision mold development center at the site in 2010 to strengthen its manufacturing capabilities.
“Samsung Electronics will rapidly expand its HVAC business as a future growth engine and establish itself as a leading player in the global market,” said Kim Cheol-gi, head of digital appliances business at Samsung Electronics.
“The new production line in Gwangju will provide an important foundation for securing differentiated competitiveness in our HVAC business.”
yeeun@heraldcorp.com