LG Electronics (KRX:066570) signed a global research deal to co-develop high-efficiency HVAC systems tailored for extreme heat zones like deserts and tropical climates, according to a company release on Monday.

The South Korean electronics products maker partnered with Pusan National University, Saudi Arabia's King Saud University, and distributor Shaker Group. The partnership will test and refine HVAC performance in real-world Saudi Arabian conditions, the report said.

The research will focus on enhancing product performance and control technologies using operational data. It also aims to validate the energy-saving capabilities of LG's AI Engine in its Multi V i system, which adjusts cooling based on indoor/outdoor temperatures and occupancy, it said.

Shares of LG Electronics fell nearly 3% in recent trade.