Samsung Mulling to Make a Move to the US for Long-Term Growth With Plant Set up
Samsung was earlier reported to have been concerning itself with setting up a plant in the United States. According to reports, this move would be carried out in order to avoid additional import tax on products that were manufactured for US-based citizens, a move that was detailed by US President Donald Trump. While Samsung did not confirm anything at that time, it looks like the company might actually be thinking long and hard about this decision.
Samsung Senior Official States That Company Is Contemplating a Move to Relocate Its Plant From Mexico to the United States
At a media event where Samsung’s officials were present to unveil the company’s latest washing machine that would belong to the premium category, Suh Byung-sam, Executive Vice President of the digital appliances business of the consumer electronics division at the South Korean firm stated the following according to Korea Herald.
“The company is observing recent global trends in order to enhance competitiveness abroad. It is considering a plan to open a plant in the US as part of mid- and long-term strategies.”
It has also been reported that Samsung is expected to invest around $300 million USD for a new plant manufactured in the US. Industry sources have claimed that Samsung is looking at a total of five states for its home appliance plant in the country, and that would include South Carolina and Alabama. Sources state that South Carolina could be the likely candidate but did not provide reasoning why they believed this was so.
Perhaps South Carolina could be the ideal state for Samsung since the company would get tax concessions and other perks for setting up its plant there. Some people speculate that if the company were to set up a plant in the United States, it would double its size of LG Electronics, Samsung’s rival who is also looking to set up a $250 million factory in Tennessee.
Take this report with a pinch of salt for now because Samsung is yet to make its decision on the matter. However, the tax penalty being issued on the company’s products might have long term and negative ramifications for its business should it decide to withdraw its stance about setting up a US-based plant.