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South Korea’s Samsung Electronics and at least one other device maker are considering moving some operations from their factories in Mexico to their factories in the United States.
The review comes in response to President Donald Trump considering imposing 25% tariffs on imports from Canada and Mexico on February 1, a South Korean newspaper reported on Tuesday.
Samsung is looking to move dryer production, which currently takes place at its factory in Queretaro, to a factory in South Carolina, according to the British newspaper “Daily Mail”. Korea Economic Daily. The newspaper indicates that the main product of the South Carolina plant is washing machines.
The US facility was established in Newberry County, South Carolina in 2017. Samsung’s website states. It was Samsung Electronics Home Appliances America’s (SEHA) first home appliance manufacturing facility in the United States.
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People walk past the Samsung Electronics logo outside the company’s Seocho Building in Seoul on July 7, 2022. (Jung Yeon-ji/AFP via Getty Images/Getty Images)
“Previously, everything came from across the ocean, so if we had any parts shortages, any delays, or any physical defects, we would have to wait forever,” Bobby Stevens, SEHA’s production manager, said in a 2023 statement. “.
“But now, we have local materials, so within a few hours or even 10 minutes, we can get the parts and materials we need to keep everything going, so that has had a huge impact on production here,” he added.
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A Samsung Electronics washer and dryer is displayed for sale at the Airport Home Appliance store in San Jose, Calif., on Tuesday, July 30, 2019. (David Paul Morris/Bloomberg/Getty Images)
The Newbury facility has generated “nearly $500 million in capital investment for the region” and directly supports “more than 1,500 jobs for local residents as part of its ongoing operations,” Samsung said in the statement.
LG Electronics is considering moving its Mexican refrigerator operations to its washer and dryer plant in Tennessee, the Korea Economic Daily reported.
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| SSNLF | Samsung Electronics Co., Ltd. | 40.5999 | -17.15 |
-29.70% |
Samsung Electronics Co. washing machines and LG Electronics Inc. On sale at an airport home appliance store in San Jose, California, on Tuesday, July 30, 2019. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
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Samsung said it plans to monitor the situation and respond flexibly, as it operates production bases in several regions of the world. LG Electronics said it plans to respond to changes in the market by adjusting the production system and production sites.
“If we build a factory in the US, we will not only be able to avoid tariffs, but we will also have the ability to supply products immediately when customers want them,” an unnamed industry source told the media. “If we produce in a US factory, we can reduce the domestic product supply period by a quarter.”
Reuters contributed to this report.