In a recent interview last Sunday, LG Electronics’ CEO Jo Seong-jin confirmed that the company is in the process of deciding whether or not to construct a home appliance manufacturing plant in the United States. Reportedly the company is in the “process of reviewing various plans”, and the CEO added that so far, roughly “80% of the preparations” leading to the construction of its first home appliances factory State-side have been completed.
In November 2016, both Samsung and LG Electronics have expressed their concerns in regards to the so-called “Trump Tariffs” laid down by US President-elect Donald Trump, whose proposal is to set in place an import tariff (of anywhere between 5% to 45% according to various reports) in an attempt to limit the number of imported goods into the country and promote the manufacturing of goods on US soil while discouraging outsourcing. Needless to say, LG’s decision to build a new factory in the US seems to have been at least accelerated by these changes in US policies. LG Electronics’ CEO added that in light of speculations that the US government will favor US-based manufacturers, the company “cannot sit idly in a situation where importers are subject to grave disadvantages.” According to reports, LG is almost ready to start the building process of its first home appliance manufacturing plant on US soil in the first half of 2017, and around 80% of prerequisites have been met. Reports also say that LG Electronics is now trying to figure out the best way to approach the matter, and how much of its production process should be moved across the ocean and into the United States. The company is also considering whether to assemble home appliances in the US using imported parts, or to adopt a different production model altogether. Either way, the company will continue to promote its LG Signature premium home electronics brand not only in the United States, but South Korea, Europe, Asia, Central and South America, and the Middle East.
During the interview, Jo Seong-jin also discussed the recent claims that his company might be retiring from the smartphone market, and the CEO confirmed that LG’s mobile communication branch has no such intentions in mind. On the contrary, the CEO said that aside from its standalone value in the smartphone business, the company’s mobile communication branch “must continue to pursue for new future businesses such as robots, smart homes, and home appliance integration”.