Samsung Electronics officially kicked off construction of a new heating, ventilation, and air conditioning (HVAC) production line in the southwestern South Korean city of Gwangju on Monday, with a groundbreaking ceremony held at the site. The tech giant is channeling roughly 240 billion won (approximately $173 million) into the project, which will see a sprawling 21,500-square-meter production facility take shape at its existing Gwangju campus, according to the company.

The forthcoming line is slated to begin commercial operations in 2028, positioning it to manufacture HVAC equipment for FlaktGroup Holding, a German ventilation systems specialist that Samsung acquired last year. Roh Tae-moon, vice chairman and co-CEO of Samsung Electronics, who also spearheads the Device eXperience (DX) division, underscored the strategic significance of the expansion during the ceremony, stating that the launch of the FlaktGroup production line marks a pivotal step forward in elevating the HVAC business, which the company views as a key growth driver.

Against the backdrop of skyrocketing demand for cooling and HVAC solutions fueled by AI data centers, Samsung highlighted that this new facility is set to bolster its global manufacturing capabilities in advanced cooling equipment and centralized HVAC systems, ensuring the company remains at the forefront of this rapidly evolving sector.