Samsung Plans to Expand U.S. Production Facilities; Would Shift Manufacturing from Mexico

Samsung Electronics is planning on a major investment to expand its U.S. production facilities in at least five states, according to those familiar with the plan.

The company is expected to invest around $300 million and produce 500 jobs with Samsung’s decision to shift production of oven ranges to the U.S. from Mexico, the Wall Street Journal reported.

No final decisions have been made on the deal yet, and a production start date for the oven ranges has not yet been determined, sources said.

The sources added that Samsung is eventually looking to expand U.S. manufacturing of refrigerators, washers, dryers, and other home appliances, but the company has not made a firm commitment or set a deadline for those decisions.

People familiar with the plan say President Donald Trump’s election win has spurred the company’s interest in building a U.S. factory.

Trump made it a signature issue of his campaign to keep manufacturing jobs in the U.S. and has threatened penalties for companies that do not comply.

Trump already made a deal with Carrier Corporation to keep jobs in the U.S. in November before he became president, and many other companies have followed suit in creating more U.S.-based manufacturing jobs.

The company has initially discussed developing sites in Alabama, Georgia, North Carolina, Ohio, and South Carolina, but South Carolina is a strong contender because Samsung expressed interest in developing a site in Blythewood, South Carolina, a source familiar with the developments said.

Samsung confirmed the plans for expansion to the Journal in a statement saying “preliminary” discussions about a new home appliance facility had taken place.

“However, 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.

The company said Samsung was looking at operations in the U.S. “early last fall.”

People familiar with the discussions said Samsung is looking to expand on an existing facility, rather than build a new one. Most of Samsung’s appliances are currently manufactured in Mexico.

Other firms have planned on investing or expanding U.S. operations. Masayoshi Son, head of Softbank Group, pledged to invest $50 billion in 50,000 U.S. jobs back in December, while Foxconn Technology Group planned to invest $7 billion in a display-making plant in the U.S. in January.


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