Samsung Electronics is constructing production base for its home appliance products in South Carolina. It is going to invest $380 million into this production base and is going to start producing washing machine in 2018. It will be interesting to see whether or not direct investment into the U.S. will ease economic pressure that is becoming stronger.
Samsung Electronics signed off on a LOI (Letter of Intent), which lists information regarding construction of production plant for Samsung Electronics’ home appliances, with South Carolina Government at Willard Hotel located in Washington D.C. on the 28th (U.S. time).
President Yoon Boo-geun of Samsung Electronics CE (Consumer Electronics) sector and Governor Henry McMaster of South Carolina were in attendance at this ceremony. Samsung Electronics is going to invest about $380 million and hire about 950 as employees.
Samsung Electronics had examined locations in the U.S. since 3 years ago in order to prepare basis for continuous growth in the U.S., which is an important market for home appliance business. It had carried out variety of evaluations such as business value on locations that were chosen as possible candidates.
It had carried out negotiation with South Carolina since second half of 2016. As a result, Newberry County was chosen as the final choice due to skillful people within the county, developed supply network, infrastructures for shipping network, and smooth partnership between local society and a business. Newberry is located about 241km northwest from Charleston Port in South Carolina.
If Samsung Electronics expands current location and construction its production plant, it is expected that it will be able to produce its products right away. This location was once used by Caterpillar, which is a construction machinery manufacturing company, as electric generator packaging facility.
Samsung Electronics’ goal is to start operating production lines for its washing machines in early 2018. It is planning to rapidly supply efficient products according to demands from American consumers and their preferences.
Samsung Electronics is expecting that it will be able to prepare basis for long-term growth in the U.S. market by constructing its plant in the U.S. It is likely that this will also help Samsung Electronics to avoid economic pressure, which is getting stronger, such as anti-dumping lawsuit regarding washing machines.
Samsung Electronics acquired Dacor, which is a North American luxury home appliance brand, in last September and has secured built-in home appliance production base that targets housings and constructions around industries in California. By securing this new production line, it is planning to accelerate its plans to go after premium home appliance markets in the U.S. According to an American market research company called TraQline, Samsung Electronics had the highest market share in home appliance market in the U.S. last year with 17.3%.
“We have provided our home appliance business in the U.S. for 40 years and we are loved by our consumers in the U.S. due to our innovative products such as Family Hub refrigerators, Flex-Wash washing machines, and dryers that are made to consider them.” said President Yoon Boo-geun of Samsung Electronics. “By constructing this production plant, not only are we going to expand our business in the U.S. but we are also going to strengthen our connection with American consumers, engineers, and innovative companies that lead global trends for home appliances.”
Staff Reporter Kwon, Keonho | wingh1@etnews.com