Samsung expands manufacturing in the US to produce home appliances
By April Kirstin Chua
A spokesperson of Samsung confirmed on Wednesday that the company is looking to expand and open a manufacturing facility in the United States.
Samsung Electronics Co Ltd is in the early talks to open a new home appliance making facility in the US after it began reviewing manufacturing operations early last fall.
The South Korea-based technology giant will spend at least $300 million on the manufacturing project and is already discussing plans with five states. Aside from the US expansion, Samsung is also planning to shift some manufacturing from Mexico.
The new manufacturing comes as President Donald Trump pushes for tax and regulatory reform to encourage more investments in manufacturing facilities domestically rather than internationally.
"Whatever happens in the future is really a decision made by our headquarters, it's not an internal decision of ours," a Samsung executive in Mexico said in a statement.
The Trump administration has long threatened an import tax and the president has attacked some of the world's biggest companies to invest more in the US. Samsung clarified that the company began thinking about the new manufacturing factory even before Trump was elected.
The US manufacturing expansion and the shift could potentially generate 500 jobs but Samsung refuses to finalize all decisions until careful planning and deliberation have been made. "This is a complex process that, like all strategic business decisions, will not be made final until it is determined through proper due diligence and planning that it is the best option for Samsung," Samsung said in a statement.
The move follows a similar investment from rival LG Electronics Inc that promised, last month, it would spend $250 million to build a home appliance factory in the US. Other big companies including Intel, Amazon and Apple have either pledged to invest in the US by creating a factory or open more jobs for citizens and residents in the country. The US remains as one of the biggest markets for Samsung with the company's plan to invest more than $1 billion in its facilities in Texas.