Strategic step to accelerate the growth of the European HLK market and beyond
SEOUL, June 30, 2025 – LG Electronics (LG) has signed an agreement on a 100 percent share of OSO, one of the leading providers of water heating solutions in Europe. The strategic acquisition will strengthen the comprehensive heating, ventilation and air conditioning portfolio (HIVAC)-a nuclear growth engine of its B2B business and accelerate the ambitation of the company, to become a high-ranking player in the HLK industry.
OSO was founded in 1932 and offers a complete range of water heating solutions, including electric hot water loaders, stainless steel heat storage systems for heat pumps and boilers as well as other advanced water heating technologies. OSO, a recognized market leader, has established its presence in the European market for $ 15 billion heating and hot water solutions.
Drive growth through integrated HLK and water heating solutions
In Europe, the demand for AWP systems (Air-to-water heat pumps) is increasing, which provide heating, cooling and hot water by moving out heat from ambient air. This growth is powered by climate policy and the concerns of energy security in the region.
According to BRG Building Solutions, the market for the European heat pump is expected to double by 2030. The annual turnover of the units increases from around 1.2 million to 2.4 million in 2024 at the beginning of the next decade.
By combining the OSO product line -up with the progressive heat pumping technologies from LG, the acquisition creates immediate synergies. This integration will further improve LG's ability to provide complete HLK solutions, strengthen its competitiveness in Europe and to support its wider global expansion strategy. LG plans to offer integrated HLK and water heating packages that provide optimized solutions that are tailored to the various customer needs. In addition, LG will combine its F&- and heat pump competence with the deep product knowledge of OSO in order to expand and increase its general HLK resolution portfolio.
The stainless steel hot water solution from OSO leads the European market
For heat pumps designed for heat pumps, there are usually either enamel or stainless steel. While enamel was historically preferred, stainless steel is now preferred due to its superior hygiene and corrosion resistance.
The Hot Water Solutions from OSO from OSO offers excellent energy efficiency and minimal heat loss – important advantages that have contributed to the company to secure a leading position in Europe. With manufacturing systems in Norway and Sweden, OSO ensures timely and stable supply of high -quality products in the entire region. The early introduction of automated manufacturing processes by the company has also enabled exemplary product quality and cost competitiveness.
LG aims to build on these skills by pursuing innovations together with OSO and improving automation and productivity through a 60th anniversary of production competence. The integration of the networks and the infrastructure of both companies is expected to unlock high -performance synergies.
According to the acquisition, OSO will continue to operate independently, maintain its existing OEM partnerships and pursue new growth opportunities – and at the same time benefit from LG's global scale and resources.
Acceleration of growth with the “3b” strategy of LG: building, borrowing, buying
At the end of 2024, LG set up the ES company to accelerate growth in his HLK business. With the ambitious goal of exceeding the growth of the industry in the CleanTech sector, the ES company offers a comprehensive HLK portfolio for large-scale cold, which include residential and commercial lime systems.
LG is also pioneering work for the digital transformation of HLK and uses AI-powered technologies to the next generation solutions for data centers, nuclear facilities and mega factories.
In order to promote this growth, the HLG business of LG actively leads a “3B strategy”: Building Internal skills, Lend external specialist knowledge and purchase through strategic acquisitions. The OSO deal illustrates this approach and underlines the commitment of LG to expand its B2B footprint by mergers, acquisitions and partnerships.
“LGS deep know-how in heat pump warm water in combination with the leadership of OSO stainless steel tanks will ensure sustainable, high-quality product solutions for our customers,” said Sigurd Braathen, owner of the OSO Group AS.
“The proven water heating solutions from OSO are a strategic catalyst for the HLG expansion of LG,” added James Lee, President of the LG ES Company. “Together we will deliver highly efficient, integrated solutions that strengthen our market leadership and support global electrification for a more sustainable future.”
# # # #