April 24, 2024
LG
LG warns of delay in factory construction in US
[THE INVESTOR] LG Electronics said on Oct. 20 that Washington’s steps to impose trade barriers against Korean washers may result in the delay of its factory construction in Tennessee.
The statement came as the US International Trade Commission determined earlier this month that washers produced by Korean firms overseas are hurting the domestic industry, hinting at trade barriers.
Whirlpool is currently demanding that Washington slap 50-percent tariffs on the washers.
In response to the move, LG said rising sales of its washers in the US is only attributable to the consumers who are opting for the company‘s products over others based on performances, saying a safeguard will only damage domestic users and retailers.
“If South Korean companies’ ground in the U.S. is weakened due to the safeguard, it may result in a delay in the operation of the factory currently under construction,” LG said. “This will hinder the creation of more jobs in the US, and have an adverse impact on the local economy.”
In August, the company said it will invest US$250 million to build a washer factory in Tennessee, which is expected to be completed in the first quarter of 2019. The plant will have an annual production capacity of 1 million units.
By Alex Lee and newswires (alexlee@heraldcorp.com)
The statement came as the US International Trade Commission determined earlier this month that washers produced by Korean firms overseas are hurting the domestic industry, hinting at trade barriers.
Whirlpool is currently demanding that Washington slap 50-percent tariffs on the washers.
In response to the move, LG said rising sales of its washers in the US is only attributable to the consumers who are opting for the company‘s products over others based on performances, saying a safeguard will only damage domestic users and retailers.
“If South Korean companies’ ground in the U.S. is weakened due to the safeguard, it may result in a delay in the operation of the factory currently under construction,” LG said. “This will hinder the creation of more jobs in the US, and have an adverse impact on the local economy.”
In August, the company said it will invest US$250 million to build a washer factory in Tennessee, which is expected to be completed in the first quarter of 2019. The plant will have an annual production capacity of 1 million units.
By Alex Lee and newswires (alexlee@heraldcorp.com)
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