Seoul: LG Electronics Inc., South Korea's leading home appliance maker, announced its acquisition of a Norwegian hot water storage company, OSO Group AS, as part of its strategic initiative to bolster its presence in the European air and water heating markets. This acquisition marks LG's entry into the water heating segment, complementing its existing air heating business in the region.

According to Yonhap News Agency, LG Electronics has acquired a 100 percent stake in OSO Group AS, a company renowned for its smart stainless steel hot water tanks. The firm aims to leverage OSO Group's innovative hot water storage solutions in conjunction with its high-efficiency air-to-water heat pump (AWHP) systems to expand its footprint in Europe's heating, ventilation, and air conditioning (HVAC) market. The acquisition price, however, has not been disclosed by LG Electronics.

In a statement, LG Electronics highlighted that combining its AWHP systems with OSO Group's technologies will enhance its capability to meet the growing demand in Europe, where countries are increasingly focused on reducing greenhouse gas emissions and addressing energy supply uncertainties. Lee Jae-sung, president of LG Electronics' Eco Solutions division, emphasized that OSO's hot water storage technologies are expected to serve as a "core catalyst" for LG's expansion in the European HVAC market.

The European heat pump market is set for significant growth, with projections indicating an increase from approximately 1.2 million units in 2024 to 2.4 million units by 2030, as reported by global consulting firm BRG Building Solutions. This growth is driven by the rising demand for AWHP systems, which utilize thermal energy from outdoor air for indoor heating, cooling, and hot water, without relying on fossil fuels.