SEOUL Samsung Electronics Co Ltd (005930.KS) could construct a U.S. plant for its residence home equipment enterprise, an individual accustomed to the matter stated, the newest world agency to think about a response to criticism about imports from new U.S. President Donald Trump.
Specifics comparable to the quantity the electronics large would possibly make investments and the place the brand new base might be situated have but to be determined, stated the individual, declining to be recognized as a consequence of lack of authorisation to talk publicly on the matter.
The new U.S. administration has threatened an import tax whereas Trump has attacked among the world’s greatest firms for manufacturing overseas for U.S. customers, stoking a lot alarm and triggering a rash of guarantees to take a position extra within the United States.
Samsung declined to touch upon whether or not it has any particular plans so as to add manufacturing services within the U.S. however stated it has already made vital investments within the nation – together with the $17 billion the agency has spent so far for its Austin, Texas chip plant.
“We continue to evaluate new investment needs in the U.S. that can help us best serve our customers,” it stated in an e-mail.
South Korean corporations haven’t been singled out to this point, however some have launched into preemptive strikes to keep off criticism. The Hyundai Motor Group stated final month it plans to carry U.S. funding by 50 % to $3.1 billion over 5 years.
LG Electronics Inc (066570.KS) additionally introduced in January that it’s going to resolve on whether or not to construct a producing base within the United States throughout the first half of the yr and warned of dangers from the Trump administration’s commerce insurance policies.
Plants for assembling home equipment wouldn’t pose a monetary burden for the likes of Samsung or LG, stated Jay Yoo, an analyst at Korea Investment.
If a border tax was imposed, investing in crops can be important in the event that they wished to stay aggressive with rivals comparable to Whirlpool Corp (WHR.N) that make home equipment within the nation.
“Of course costs would rise, but if they don’t do that they would get hit with tariffs,” Yoo stated.
LG is contemplating Tennessee as a location for a brand new residence home equipment and tv plant as a part of its deliberations, an individual accustomed to the matter informed Reuters. An LG spokeswoman declined to remark.
“This is something that has been under consideration for years at LG, but the current political situation is simply accelerating that timeline for a decision,” the individual stated.
(Reporting by Se Young Lee; Editing by Edwina Gibbs)