AC sales in Saudi Arabia reach SAR 15 bln annually: Johnson Controls Arabia CEO

CEO of Johnson Controls Arabia Mohanad Al Shaikh

Sales of the air-conditioning (AC) sector in Saudi Arabia range between SAR 13-15 billion annually, while the global market is valued at $100 billion, CEO of Johnson Controls Arabia (JCIA), Mohanad Al Shaikh, said.

Al Shaikh pointed to large local consumption and market size, citing the Kingdom’s weather conditions.

Total investments in AC systems in the Kingdom increased by 20%-30% in 2022, Al Shaikh told Argaam on the sidelines of “For A Sustainable Tomorrow” Conference, expecting a similar rise next year.

JCIA is working on opening a FM-200 Gas Suppression System plant at King Abdullah Economic City (KAEC) within the next five-six months. The cooling factory will operate with a total capacity of 150,000-300,000 annually.

The factory is the largest in the Middle East, Africa, Europe, South America and Southeast Asia. It is distinguished for being the only among 50 factories of Johnson Controls, which has a specialized research and development center, and four internationally credited laboratories, Al Shaikh elaborated.

YORK Manufacturing Complex in KAEC exports 30% of annual production to 25 countries in the Middle East, Africa and South Asia. The complex aims to boost these exports by 50%-70% in the coming years.

The regional headquarters license obtained by the company contributed to boosting exports to regional countries, as well as transferring the technology and experience that provide local know-how. The Kingdom has become a technology hub for neighboring countries in the region, Al Shaikh added.

JCIA holds a large share in the Saudi AC market, he noted, explaining that the company has customers from all sectors, such as The Two Holy Mosques, airports, hospitals, hotels, and economic cities.

JCIA makes high-efficiency, sustainable heating, ventilation, and air-conditioning (HVAC) products. It recently launched two products, which were manufactured at the YORK complex. The first product was the variable-refrigerant flow (VRF), which has a single outdoor unit that can be connected to multiple indoor units of various types.

The second product was the YVAA air-cooled variable speed drive screw chiller, which reduces energy consumption by 15%-25% annually through reduced refrigerant compression.

In 2000, JCIA launched operations in the Kingdom. It owns various brands, such as YORK, Hitachi, and Tyco, backed by its strategic partnership with the global technology and industrial leader, Johnson Controls International.