Samsung Electronics has established a joint venture with U.S. heating, cooling and air conditioning company Lennox, and is making a full-fledged move to diversify distribution channels in the North American individual air conditioning market.

Samsung Electronics announced on the 28th that it has signed an agreement with Lennox to establish a joint venture, Samsung Lennox HVAC North America.

Through this joint venture, Samsung Electronics plans to make a full-fledged foray into the individual air conditioning market, which is seeing increasing demand in the North American market.

In North America, where single-family homes are the norm, the unitary system is popular because the ceiling space of the homes is wide, making duct installation easy. However, recently, as the supply of apartments and small and medium-sized buildings has increased, the demand for ductless air conditioning systems and combined types that combine unitary and individual air conditioning is increasing.

Samsung Electronics, which has provided innovative individual air conditioning solutions around the world for over 40 years, and Lennox, which has a North American distribution network and unitary air conditioning solutions, plan to collaborate to increase synergy.

Samsung Electronics will expand its sales channels by adding Lennox's distribution network to its existing distribution network, and Lennox will be able to strengthen its business by selling Samsung Electronics' individual air conditioning products in addition to unitary products.

The joint venture will supply individual air conditioning products under the Lennox Powered by Samsung brand to Lennox direct stores and home builder partners in North America, and to Samsung Electronics' existing distributors.It is supplied as a Sung brand product.

Through this partnership, Samsung Electronics will provide AI life solutions and connected experiences to consumers based on its leadership in artificial intelligence (AI), software, smartphones, and semiconductors.

Individual air conditioning products provided by Samsung Electronics are equipped with SmartThings, which enables connection and control between devices, and SmartThings Energy, which monitors and reduces power usage throughout the home.

In addition, we plan to diversify our distribution channels by expanding partnerships with North American home builder construction companies, while expanding business opportunities to include various products and solutions such as home appliances and TVs in addition to air conditioning solutions.

“This joint venture brings together two companies with a strong customer base and leading market presence,” said Alok Maskara, Lennox CEO. “We are honored to have the opportunity to work with Samsung as we invest in air conditioning technologies to delight our customers, and we look forward to the future together.”

“We are delighted to have entered into a long-term collaboration with Lennox to lead the air conditioning market,” said Choi Kyung-sik, president of Samsung Electronics North America. “This collaboration, which focuses on excellent individual air conditioning products and securing a customer network, will further strengthen our market competitiveness. We will continue to introduce innovative technologies in the air conditioning sector together in the future.”

The joint venture is scheduled to be launched in Roanoke, Texas, USA in the second half of this year, with Samsung Electronics owning a 50.1% stake and Lennox owning a 49.9% stake.