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LG Electronics planning to build regional HQ in Riyadh
LG Electronics is said to be mulling on setting up its regional headquarters in Saudi Arabia’s capital city, Riyadh. This means that the company may relocate and build its Middle East HQ in the said location.
According to The Korea Herald, LG Electronics is being pressured to transfer to be on the same level as other multinational firms. Based on the reports, the South Korean tech and electronics company that manufactures home appliances, cutting-edge television sets, laptop machines, and more is thinking of launching regional HQs that will supervise its operations in Africa and the Middle East.
The Seoul-headquartered company will designate the headquarters that it will be putting up to manage LG Electronics’ sales and manufacturing in the region. Then again, the firm has yet to determine if the new HQ in Riyadh will be its second headquarters or it will just replace the one in Dubai, United Arab Emirates altogether.
“An LG representative during the President’s visit to Saudi Arabia brought up a possible constraint in business without establishing a regional headquarters in Saudi Arabia before the end of 2023,” a company spokesman said in a statement with regards to the consideration of a new HQ. “But no further plans have materialized.”
Aside from the regional headquarters in Dubai, LG Electronics also has one in Frankfurt, Germany, and this manages the business operations in Europe. It also has an HQ in New Jersey, U.S.A. for its North American business.
In any case, it was reported that the plan to have another regional headquarters in Saudi Arabia was actually first brought up in February 2021. The goal was to create more local jobs and encourage more localization. Saudi already issued licenses to 44 multinational companies so they can relocate in their land, and LG is also likely to get it if it pushes through with the plan.
Finally, Reuters reported that LG Electronic’s announcement about its consideration for a new HQ in Riyadh came after the South Korean President Moon Jae In visited the country. Saudi Arabia was his second destination during his trip to the Middle East, which runs from Jan. 15 to Jan. 22.