South Korean appliance maker LG Electronics Inc. will be spending millions of dollars in a new factory in the United States. The announcement comes on the heels of President Donald Trump's threat to impose heavy taxes on products made outside of the country.
The International Business Times reported that LG set aside $250 million to build a manufacturing facility in the state of Tennessee in the United States. The new factory will be used for the production of washing machines that have technologies that are state of the art.
Producing washing machines is just the starting point for the manufacturing facility. LG has plans to expand the scope of the Tennessee factory to other appliances as well.
LG has picked Tennessee as the location of the manufacturing facility because the state has offered to give it an attractive package, according to a report by Salon. Details of the package remain under tight wraps because the South Korean appliance maker and the state government of Tennessee have not finalized the agreement yet.
However, the state government might offer monetary and other forms of support in order for the project to push through. The manufacturing facility is expected to create jobs in the state, so the project could get support when it comes to improving construction and infrastructure, as well as hiring.
Bill Haslam, governor of Tennessee, welcomed LG's decision to build the manufacturing facility in the state. He sees the action as an acknowledgment and expression of confidence that the state is friendly to businesses.
Aside from the Tennessee project, LG is also planning to create thousands of jobs in New Jersey with the construction of a building. The project will cost $300 million.
Jobs & Hire previously reported that the South Korean appliance maker is working on its LG G Pad III 10.1.