A rendering of the Samsung Electronics Fläkt Korea factory. [Kumho Engineering & Construction]
A rendering of the Samsung Electronics Fläkt Korea factory. [Kumho Engineering & Construction]

Kumho Engineering & Construction has signed a construction contract with Samsung Electronics to build the Samsung Electronics Fläkt Korea factory, the domestic production base for Samsung's heating, ventilation and air conditioning business, the company announced Friday.

The project will establish a domestic manufacturing base for FläktGroup, a German HVAC equipment maker that Samsung Electronics acquired. FläktGroup is Europe's largest air-handling equipment company, and the new factory is intended to strengthen Samsung's HVAC production capacity in South Korea.

The single-story factory will be built on a total floor area of 23,588 square meters at 70 Aemno, Buk-gu, in the Gwangju-South Jeolla integrated special city. The facility will include a main HVAC production floor, office space, warehouses, laboratories and rest areas, with completion scheduled for February 2028.

HVAC systems integrate cooling, heating, ventilation and air quality management. Demand for them is growing as critical infrastructure for advanced industrial facilities such as AI data centers and semiconductor factories.

Samsung Electronics plans to use the new production line as a springboard to develop its Gwangju site into a global manufacturing hub covering both AI home appliances and HVAC.

"This project has significantly broadened our construction experience in the advanced industrial facilities sector," a Kumho Engineering & Construction official said. "We will draw on our accumulated technical expertise and construction know-how to carry out the project successfully."

Meanwhile, Kumho Engineering & Construction has been drawing market attention amid growing expectations surrounding the government's plan for an early ground-breaking of a semiconductor cluster in the Honam region. Although the company's headquarters is in Seoul, its main office is in Naju, South Jeolla Province, making it a representative Honam-region construction company. Its share price has surged of late as a result.


quq@heraldcorp.com