Viking Range Corp. of Greenwood has entered into a strategic alliance with a South Korean appliance maker.
The agreement with LG Electronics Inc. was announced today at the International Builders Show in Las Vegas, Nev.
Viking said it plans to use the alliance to increase its international distribution, especially in the Asia and Pacific markets.
LG will use the deal to reach more U.S. consumers through Viking’s U.S. distributors. Viking’s distributors are expected to begin offering LG appliances in the second quarter of this year.
Viking’s distributors will complement LG’s existing U.S. network of national and regional appliance dealers.
“Teaming with LG will give our loyal distributors new growth opportunities while allowing Viking to work with one of the strongest global brands and technology leaders in home appliances,” Viking CEO Fred Carl Jr. said in a news release. “We look forward to this mutually beneficial relationship, including future opportunities for product development collaboration.”
Today’s news release said the alliance offered “areas for collaboration (that) include product cross-sourcing and joint procurement opportunities, and shared R&D and service resources, as well as expanded distribution.”
Viking is a manufacturer of ultra-premium, commercial-type appliances for indoor and outdoor kitchens and a culinary lifestyle company.
LG Electronics, based in Seoul, South Korea, is one of the world’s largest manufacturers of flat-panel televisions. LG’s U.S. product line includes home entertainment products, mobile phones, home appliances and computers.
In 2008, LG reported global sales of $44.7 billion. Viking, which is privately held, does not release its sales figures.
Although LG makes its own line of kitchen appliances, it is not considered a competitor of Viking’s. LG’s products are designed for the mass market and have been traditionally distributed through “big box stores,” said Jane Crump, public relations manager for Viking. Viking’s upscale product line is sold through a worldwide network of independent distributors.
“This alliance will leverage the respective brand, technology, marketing and distribution strengths of LG and Viking, enabling us both to satisfy a broader range of consumer needs,” said James Shad, president of LG Electronics USA, the Korean company’s North American subsidiary. “Viking has built an exceptional brand, and LG is proud to be associated with this American icon’s heritage of quality and customer service.”
nOn the Net: Viking Range Corp. at www.vikingrange.com and LG Electronics USA at www.lge.com/us
