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Samsung to expand in US, shift some manufacturing from Mexico: WSJ

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Samsung Electronics is planning to expand its US production facilities, shifting some manufacturing from Mexico, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

[NEW YORK] Samsung Electronics is planning to expand its US production facilities, shifting some manufacturing from Mexico, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The company is in early talks to open a new home appliance-making facility in the United States, a Samsung spokesperson said in a statement on Wednesday, adding that Samsung began reviewing manufacturing operations "early last fall".

Samsung declined to comment on whether it would move manufacturing from Mexico.

Samsung's initial capital investment is expected to be about US$300 million (S$425.5 million), the Journal reported, citing people familiar with the matter.

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Reuters reported early in February that Samsung may build a US plant for its home appliances business.

The South Korean company's move comes amid criticism from US President Donald Trump about companies manufacturing abroad for US consumers.

The Trump administration has threatened an import tax, while Mr Trump has attacked some of the world's biggest companies, prompting some to make promises to invest more in the United States.

Samsung's move follows a similar investment from rival LG Electronics, which said last month it would spend US$250 million to build a home appliance factory in the United States.

At least five US states are in talks with Samsung, and the move could generate around 500 jobs, the Journal reported.

REUTERS

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