In what is considered to be the latest global firm to consider a response to criticism about imports from new U.S. President Donald Trump, Samsung Electronics may build a U.S. plant for its home appliances business, reported the media quoting a person familiar with the matter.
The sources, according to the media, declined to be identified due to lack of authorization to speak publicly on the matter, said that specifics such as the amount the electronics giant might invest and where the new base could be located have yet to be decided.
Stoking much alarm and triggering a rash of promises to invest more in the United States, while Trump has attacked some of the world's biggest companies for manufacturing abroad for U.S. consumers, the new U.S. administration has threatened an import tax.
"Thank you, @samsung! We would love to have you!," Trump said on Twitter.
Samsung but said it has already made significant investments in the country, including the $17 billion the firm has spent to date for its Austin, Texas, chip plant while the company declined to comment on whether it has any specific plans to add production facilities in the U.S.
"We continue to evaluate new investment needs in the U.S. that can help us best serve our customers," it said in an email.
While some have embarked on preemptive moves to ward off criticism, South Korean firms have not been singled out so far. It plans to lift U.S. investment by 50 percent to $3.1 billion over five years, the Hyundai Motor Group said last month.
LG Electronics warned of risks from the Trump administration's trade policies and also announced in January that it will decide on whether to build a manufacturing base in the United States within the first half of the year.
Jay Yoo, an analyst at Korea Investment said that for the likes of Samsung or LG, plants for assembling appliances would not pose a financial burden.
If they wanted to remain competitive with rivals such as Whirlpool that make appliances in the country, investing in plants would be essential if a border tax was imposed.
"Of course costs would rise, but if they don't do that they would get hit with tariffs," Yoo said.
A person familiar with the matter told the media that as part of its deliberations, LG is considering Tennessee as a location for a new home appliances and television plant.
"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 person said.
(Source:www.cnbc.com)
The sources, according to the media, declined to be identified due to lack of authorization to speak publicly on the matter, said that specifics such as the amount the electronics giant might invest and where the new base could be located have yet to be decided.
Stoking much alarm and triggering a rash of promises to invest more in the United States, while Trump has attacked some of the world's biggest companies for manufacturing abroad for U.S. consumers, the new U.S. administration has threatened an import tax.
"Thank you, @samsung! We would love to have you!," Trump said on Twitter.
Samsung but said it has already made significant investments in the country, including the $17 billion the firm has spent to date for its Austin, Texas, chip plant while the company declined to comment on whether it has any specific plans to add production facilities in the U.S.
"We continue to evaluate new investment needs in the U.S. that can help us best serve our customers," it said in an email.
While some have embarked on preemptive moves to ward off criticism, South Korean firms have not been singled out so far. It plans to lift U.S. investment by 50 percent to $3.1 billion over five years, the Hyundai Motor Group said last month.
LG Electronics warned of risks from the Trump administration's trade policies and also announced in January that it will decide on whether to build a manufacturing base in the United States within the first half of the year.
Jay Yoo, an analyst at Korea Investment said that for the likes of Samsung or LG, plants for assembling appliances would not pose a financial burden.
If they wanted to remain competitive with rivals such as Whirlpool that make appliances in the country, investing in plants would be essential if a border tax was imposed.
"Of course costs would rise, but if they don't do that they would get hit with tariffs," Yoo said.
A person familiar with the matter told the media that as part of its deliberations, LG is considering Tennessee as a location for a new home appliances and television plant.
"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 person said.
(Source:www.cnbc.com)
