Samsung Electronics Invests 240 Billion KRW in HVAC Production Line in South Korea

en.Wedoany.com Reported - On August 19, Samsung Electronics signed an investment agreement with FlaktGroup Korea and the Special City of Gwangju, South Jeolla Province, to invest 240 billion KRW (approximately $170 million) in building an HVAC equipment production line at the third complex of its Gwangju plant in South Korea. The project covers a site area of 21,800 square meters and is scheduled to begin production in early 2028.

The new production line will manufacture FlaktGroup's coolant distribution units (CDUs), air handling units (AHUs), fan wall units (FWUs), and computer room air handling units (CRAHs) for AI data centers. Among these, the CDU is primarily responsible for circulating and regulating coolant between the cooling system and the cold plates of server chips, making it a critical component of data center liquid cooling systems.

Once completed, the project will become FlaktGroup's 15th production line globally. Samsung plans to leverage the existing manufacturing infrastructure at the Gwangju plant to establish it as a production base for data center cooling equipment, while gradually introducing related manufacturing technologies into its overseas production systems.

Samsung Electronics completed the acquisition of German HVAC company FlaktGroup in November 2025, with a transaction value of approximately $1.7 billion, covering cooling and air handling systems used in large data centers, hospitals, airports, and industrial facilities. The new production line is one of the major manufacturing projects to be advanced in South Korea following the integration of the two companies.

The Gwangju plant, established in 1989, currently produces home appliances such as Bespoke refrigerators, washing machines, dryers, and air conditioners. This investment marks the first addition of large-scale production facilities at the plant since its inception, and will extend its product range from household air conditioners to cooling equipment for AI data centers.