Friday, June 23, 2017

Samsung’s new $300 million US factory may be announced next week

It was first reported earlier this year that Samsung was thinking about setting up an appliance factory in the United States after the 2016 election elevated Donald Trump to the country’s highest office.

The president has vowed to amend the North American Free Trade Agreement (NAFTA) so that the United States can charge hefty tax on products that are manufactured in Mexico for sale in the US. Samsung appliances sold in the US are currently manufactured at the company’s plant in Mexico so you can see why it may want to move production.

A recent report suggested that Samsung’s new appliance factory in the United States was going to cost $300 million and that it was going to be based in South Carolina. According to a new report, a formal announcement about this could be made as early as next week.

The Wall Street Journal reports that Samsung will be moving into a factory that will soon be vacated by Caterpillar. The factory is located in Newberry, South Carolina. The company reported preferred moving into a pre-existing facility instead of having to build a new one from scratch.

Samsung is planning to shift some production of oven ranges that are currently made in Mexico. Samsung’s $300 million investment is expected to create 500 jobs. The start date is unclear but the production is said to begin next year.

The company will eventually ramp up its appliance manufacturing operations in the country by producing washers, refrigerators, dryers and other home appliances in the coming years.