[THE INVESTOR] Samsung Electronics is considering building a new appliance plant in the US, Seo Byung-sam, vice president of the company’s home appliance business unit confirmed on March 9.
His remarks come after the Wall Street Journal reported that Samsung is in preliminary talks with five states to build a new US facility.
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“We are considering building a plant in the US in line with our mid- to long-term strategy,” Seol told reporters at the company’s new washer unveiling in Seoul. “In terms of global competitiveness, a manufacturing firm’s strategy is to flexibly move its production base.”
He declined to further elaborate, saying the company will make an official announcement if it makes a final decision.
The WSJ reported that Samsung plans to spend about US$300 million on the project. Samsung has said it is also planning to move some of the production of oven ranges to the US from Mexico.
Samsung’s new plant plans come amid protectionist threats from US President Donald Trump who has warned foreign companies to produce within the US or to face hefty border taxes.
The Korean tech giant is also considering expanding production facilities of Dacor, the US luxury appliance maker it acquired last year.
On March 1, its crosstown rival LG Electronics announced it would build a new manufacturing plant near Clarksville, Tennessee, to produce front- and top-load washers from 2019. The US$250 million project is expected to generate at least 600 full-time jobs there.
By Lee Ji-yoon (firstname.lastname@example.org)