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LG Electronics To Build $250 Million Washing Machine Factory In The US

By March 1, 2017 at 9:26 am
In 2016, LG had a 28.9 percent share of the US washing machine market in terms of sales. (Photo : Getty Images)

LG Electronics Inc. announced Tuesday that it will build a new factory in Tennessee in its latest efforts to grow its market share in the world's biggest economy amid new US President Donald Trump's criticism about companies manufacturing products abroad for US consumers.

The South Korean consumer appliance maker expects to break ground on the washing machine plant worth US$250 million within this year under a memorandum of understanding signed with the state government of Tennessee.

The 829,000-square-foot facility will be located near Clarksville, Tennessee. The plant will employ 600 full-time workers and will start manufacturing washing machines in 2019, according to LG.

LG expects the bulk of washers sold for American consumers to be manufactured in the Clarksville factory. Currently, its washing machines sold in the US are made in South Korea, Thailand, Vietnam, and China.

The US plant will have an annual capacity of over 1 million units of washing machines. The 310-acre site also brings the potential to produce other home appliances and commercial washers in the future, the company said.

In terms of sales, the company held a 28.9 percent share of the US washing machine market in 2016, LG said.

Tennessee was chosen for LG's latest big investment in the US because of its quality workforce, excellent business climate and strategic location for distribution to US customers, according to Dan Song, president of the LG Home Appliance and Air Solutions Company.

South Korea is among the five biggest sources of foreign investment for Tennessee. Investments by South Korean companies reach nearly $1 billion and have resulted in the employment of over 1,700 Tennesseans, the state government said.

Earlier this month, LG's rival Samsung Electronics Co Ltd has also said that it plans to build a manufacturing plant in the US in response to criticisms from Trump about South Korean imports.

The new US government has threatened an import tax, and Trump has been critical of some of the world's largest companies, prompting some to pledge more investments in the US. 

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