South Korea’s LG Electronics has begun rolling out residential washers in full capacity from a new factory in Tennessee, its first white-goods manufacturing facility in the United States.
The factory built on a land of 77,000 square meters in Montgomery County, Tennessee, at a cost of USD 250 million has the capacity to turn out 1.2 million washers a year. LG Electronics and another South Korean electronics maker Samsung have established washer factories in the U.S. in the face of import tariffs and barriers by President Donald Trump.
LG has hurriedly built the factory lines after it faced heavy duties and import quota cap on residential washers from February.
The U.S. International Trade Commission (ITC) recommended a tariff-rate quota (TRQ) of 40 to 50 percent on imported washers manufactured by Samsung and LG if imports exceed 1.2 million units over the next three years, a move endorsed by Trump.
Samsung and LG on average sell 3 million washers in the U.S., which means they would have to locally produce 1.8 million units to keep up sales under the quota. By November, they have already shipped up to the quota cap.
Samsung Electronics also has opened a washing machine plant in South Carolina since January.―Pulse