The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Samsung Electronics Co. is in preliminary talks to expand its manufacturing operations in the US with a new facility for home appliances. The Suwon, South Korea-based technology giant expects to spend at least $300 million on the project and is discussing the plans with at least five states, the Wall Street Journal reported, citing unnamed sources. The shift may involve moving some of the production of oven ranges to the US from Mexico and could generate about 500 jobs, according to the Journal.
“This is a complex process that, like all strategic business decisions, will not be made final until it is determined through proper due diligence and planning that it is the best option for Samsung,†the company said in a statement. A Samsung representative in the US wouldn’t comment beyond confirming the talks and said the company started reviewing options in the country early last fall.
The election of US President Donald Trump influenced Samsung’s interest in a US factory, according to the sources cited by the Journal. Trump campaigned on a promise of creating jobs in the US and bringing back manufacturing, and has threatened to impose stiff tariffs on imports.
Samsung’s de facto chief, Jay Y. Lee was the only executive from a foreign company invited to a tech industry meeting Trump held in December, the Journal said. Lee was not present at the meeting. He has been embroiled in a corruption scandal in South Korea since late last year and was indicted in February on bribery and embezzlement charges. The US is one of the biggest markets for Samsung, which makes everything from smartphones to processing chips, refrigerators and televisions.