[THE INVESTOR] LG Electronics is considering building its first appliance plant in the US amid protectionism moves of the incoming Trump administration, Maeil Economic Daily reported on Jan. 6.
Currently, all LG appliances, including top-selling washing machines and refrigerators, are shipped from the company’s Mexico plant.
The report cited Tennessee as the possible venue for the new plant. Construction is expected to start within the first half of this year, with plans for completion by the second quarter in 2019.
LG operates production plants around the world, including Korea, China, Thailand and Mexico.
The report said the first production line will be dedicated to washing machines whose tariffs are higher than other appliances, followed by refrigerators to save the logistics costs.
LG is said to be investing about 100 billion won (US$84 million) to 200 billion won for the plant that it hopes to nurture as a production hub for its appliance production.
LG’s new plant comes as US President-elect Donald Trump is pledging to revise the North American Free Trade Agreement in a bid to encourage businesses to stop production in neighboring countries like Mexico, among others.
By Lee Ji-yoon (firstname.lastname@example.org)
Source: The Korea Herald